JWD showed striking Q3 results - THB 87 million in controlling share net profit, a 114% y-o-y jump - due to the launch of a 4,000sq.m. cold storage warehouse, and is expanding its business of providing on-site services at carmakers' sites. With Q1-Q3's net profit already reaching THB 243 million, the company's management is confident of a two-digit full-year growth percentage, and noted that the constructions of an LCL consolidation hub and a distribution centre within Laem Chabang port and warehouses in neighbouring countries are on track to meet the schedules, and that revenues from overseas projects are expected to be first recognised by the first half of 2016.
Dr Eakapong Tungsrisanguan, member of the Executive Committee and Chief Financial Officer of JWD Infologistics PCL, or JWD, a leading fully integrated in-land logistics service provider, revealed the company's Q3 (Jul-Sep) results, highlighting strong growth rates, particularly the controlling share net profit of THB 87 million, a 114% y-o-y jump, and the total revenue of THB 605 million, on par with the level achieved in the same period in the previous year.
The outstanding Q3 results were achieved as a result of the completion in Q3 of the construction of a 4,000sq.m. cold storage warehouse building, which had an occupancy ratio of 80%, and the installation of two of the four rubber tyred gantry (RTG) units to replace reach stackers for storage and handling of dangerous goods. The new equipment will enhance JWD's efficiency in stacking of containerised dangerous goods and the company's profitability.
As for the automotive storage and management business, JWD is increasing its focus on supplying on-site services (ie offering its services at the carmakers’ yards). It is also providing cross-border transport and car carrier services, the growth rates of which were higher than forecasted and contributed significantly to an excellent gross profit margin figure. Recognition of estimated liabilities in Q3/2014 also led to very high q-o-q growths.
Thanks to the superb Q3 performances, the company’s Q1-Q3 (Jan-Sep) results were impressive: THB 243 million in controlling share net profit (a 94% y-o-y growth) and THB 1.778 billion in total revenue (a 12% y-o-y- growth).
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer of JWD, added that the full-year growth rate is expected to reach a two-digit percentage level (2014: THB 2.284 billion in total revenue), driven by the company’s strong fundamentals and capacity to deliver efficient services to customers and by the customers’ increased confidence in securing more logistics services from the company.
For 2016, the strong growths are projected to persist. In addition, several projects are ongoing, including construction of a 9,000sq.m. LCL consolidation hub in Laem Chabang port and a distribution centre with a 6,000sq.m. warehouse for dangerous goods, the commercial operation dates of which will fall in the first half of 2016.
The commercial operation dates of the warehouses for general goods and cold storage goods in neighbouring countries are expected to fall in December for Myanmar and in the first half of 2016 for Laos and Cambodia. These overseas projects will start generating revenues in the first half of 2016.
“With our increased domestic and overseas investments to cater to the logistics industry’s bright outlook due to the introduction of the Asean Economic Community (AEC), which will facilitate the movements of capital into Thailand as the regional logistics hub, we foresee continued corporate growths for the years to come," said he.