Despite fierce competition in the logistics business, Thailand Post reported total revenue of 10.8 billion baht in the first half of this year, up 13% year-on-year.
The company posted a net profit for the first time in several years, tallying more than 157 million baht.
The strong performance is the result of its ongoing improvement of fundamentals and exploration of new revenue sources, said board chairman Rathapol Bhakdibhumi. The state enterprise has continued to improve the efficiency of its retail business and digital services.
Mr Rathapol said the company capitalised on its human resources and digital solutions to become a national convergence platform provider of logistics services to seek new growth.
During the first half of 2023, operating expenses declined 15% from the first half of last year. Transport and logistics account for the biggest portion of 44.1% of total revenue, followed by the postal group business, international services, financial business and retail business.
Revenue from the transport and logistics business increased 22% from over the same period last year, although Thailand Post still faces below-cost pricing or predatory pricing strategy of several foreign rivals.
Mr Dhanant says Thailand Post is the first company Thais think of for any service, considering its long history and trusted reputation.
The number of parcels it delivered during the first half increased 29% year-on-year.
He said Thailand Post, which celebrates its 140th anniversary this year, also promoted service accessibility nationwide during the first half of this year at a cost of 1.2 billion baht, in line with the postal enterprise's role and accountability policies.
Thailand Post booked operating losses in 2021 and 2022 because of tough competition from foreign delivery players. In 2022 it posted a loss of 2 billion baht and another 1 billion baht loss under the early retirement programme.
"Thailand Post recognises the importance of changing trends in line with the global postal business which is preparing for digital transformation, including environment-friendly shipping and logistic services," Mr Rathapol said.
He said the price war is expected to remain in the logistics market, while there are no significant differences in terms of quality and speed among the players. To avoid intense price competition, Thailand Post's board has agreed to focus on adding value to the current services, utilising the strengths and services beyond shipping products.
The strength of Thailand Post's network is its physical network, namely post offices, delivery system and sorting offices, and its human network, namely its counter staff and postmen nationwide, as well as its connection to the international post network.
"This helps strengthen business on both domestic and international levels, allowing it to expand as a national convergence platform provider in the near future," Mr Rathapol said.
Chief executive Dhanant Subhadrabandhu said the company targets 22 billion baht in total revenue this year with net profit of nearly 300 million baht.
THE 1-4-0 STRATEGY
Mr Dhanant said Thailand Post is the first company Thais think of for any service, considering its long history and trusted reputation.
As a national business, it offers opportunities and invites everyone to take part in its growth through a network of more than 38,000 skilled staff and over 30,000 service locations, with services covering 220 countries around the world, he said.
Mr Dhanant said the company will continue boosting its service quality as well as its capability while reducing operating costs. The company has implemented its latest strategy called 1-4-0, representing number one service quality, four routes of delivery including rail, air, road and digital platforms, and zero complaints in its commitment to resolving all complaints speedily.
Previously, Thailand Post boosted service capacity via a diverse range of transportation formats. Its turnaround mission includes optimising delivery service efficiency under a parcel-defined logistics method, finding new revenue streams from digital services, boosting retail capability via distribution channel development and focusing on green logistics.