JWD InfoLogistics Public Company Limited (JWD) achieved the 2019 net profit of 362 million baht, an increase of 62 percent – the best performance in five years (discounting the special profit realized from the sales of asset to the trust fund in 2017) after the Q4/2019 performance reached the new high following the realization of profit from investment in associated companies and revenue from logistics services and supply that have been growing well domestically and in ASEAN.
Dr. Eakapong Tungsrisanguan, Chief Financial Officer of JWD InfoLogistics Public Company Limited (JWD), an ASEAN top logistics and supply chain solution, revealed that 2019 was the year JWD performed very well despite the economic slowdown due to factors relating to the trade war and the strengthening of the baht. Net profit grew 62 percent to 362.8 million baht over 2018 when a 224.5-million-baht profit was achieved. When compared to past performances (discounting the special profit realized from the sales of asset to the trust fund in 2017), the 2019 net profit was the best achievement in five years. The 2019 revenue stood at 3,660.2 million baht; an 11-percent increase compared to 2017 when the revenue was 3,297.6 million baht.
The Q4/2019 performance was also a new record with a net profit of 118.8 million baht, an 85.6-percent increase compared to the same period of the previous year and was considered to be the first quarter ever for the Company with the net profit surpassing the 100-million-baht mark. The revenue for this last quarter was 988.7 million baht – a slight increase compared to the same period of the previous year.
Dr. Eakapong said further that the growth factor for 2019 was the realization of profit from investment in associated companies totalling over 114.7 million baht, most of which was the investment in Transimex Corporation, a major logistics service provider in Vietnam, and in Phnom Penh SEZ Plc., Cambodia’s large industrial estate developer. This reflected well on the potential of the Company that has invested to improve the logistics services and supply chain in the ASEAN region.
The Company’s gross margin in 2019 increased 28 percent compared to the previous year’s 26.4 percent as most of the businesses showed improved earnings and higher gross margin, such as the warehousing and general merchandise management business with a total revenue of 343.4 million baht, equivalent to a 7.7-percent growth and the gross margin grew from 10.2 percent to 20.6 percent. The warehousing and hazardous merchandise management business had a total revenue of 556.8 million baht – a 12-percent growth, and the gross margin increasing from 41.7 percent to 45.1 percent. The warehousing and vehicle management business made a total revenue of 464.9 million baht, or a growth of 6.2 percent and the gross margin increasing from 32.8 percent to 34.9 percent, etc. The food service business also showed a satisfactory growth while the self-storage business that has begun to realize full-year earnings from the opening of the Samyan branch also showed impressive performance.
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD, said the overall picture of the logistics business in the past year has been challenging due to the trade war and the strong baht situation. However, the Company managed to grow significantly compared to the overall picture of the industry. This was a reflection on the Company’s strategic moves or the efficient strategic alteration from JWD’s previous strategy of singlehandedly investing to expand businesses abroad to expanding the businesses by entering into partnerships and merging with companies with high potentials, as well as investing in supply chain businesses linked to logistics in order to grow the business that covered services within the ASEAN region, namely, Cambodia, Myanmar, Lao PDR, Vietnam, Indonesia, Thailand and also Taiwan. Therefore, the business in some countries have in fact benefited from the trade war, such as the investment in Cambodia and Vietnam that have gained from the relocation of manufacturing bases of many industries.
Meanwhile, the trend of logistics business in 2020 also depends on the factor concerning the coronavirus COVID-19 epidemic that have already begun to affect trades, hotel and travel industries. However, in the short run, the Company’s businesses will still be immune from such a factor as it was found that some customers that have rented warehouse spaces have extended further the period of their rentals.