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JWD Posts 14.3% 1Q2018 Revenue Growth, to Earn Profit Share, Revenue from Indonesian, Taiwanese Investments in 2Q2018

Back11 พฤษภาคม 2561

The leading ‘Total Logistics Solutions Provider’ JWD posted its 1Q revenue at THB 654.6m, a 14.3% YoY growth, and its 1Q net profit at THB 41.7m, a 3.5% YoY growth, driven by continued local expansions in core segments and by international growths at the targeted levels. The management noted that the company will earn its share of profit from its Indonesian cold storage investment as well as revenue from its Taiwanese food service business, and expressed confidence of its ability to generate decent returns from the proceeds of asset sale to AIMRT. It is seeking to expand further regionally to enhance competitiveness and secure the position as a provider of logistic solutions and supply chain for the industries in which it has expertise.

Dr. Eakapong Tungsrisanguan, Chief Financial Officer (CFO) of JWD InfoLogistics Public Company Limited (JWD), a leading ‘Total Logistics Solutions Provider’, revealed the company’s operating results for 1Q2018 (Jan-Mar’18), highlighting impressive YoY growths in revenue and net profit. JWD’s rental and service revenues jumped to THB 654.6m, a 14.3% YoY rise from THB 572.8m, thanks to outstanding growths in the core segments: i) the cold storage segment continued its growth momentum from the previous quarter and generated a 39.3% increase, which reflected a generally high occupancy level for cold storage space; ii) the domestic and cross-border cargo transport segment produced a 21.1% growth rate due to an expansion of its fleet to cater to demands from new customers both locally and internationally; iii) the general warehousing segment recorded a 13.2% growth, propelled by an overall economic recovery and increased demands for additional cargo warehousing space from industrial clients and the greater warehousing volume in the JWD Chemical Supply Chain business; and iv) the document and data storage segment grew 10.7% after winning new customers. The 1Q net profit grew to THB 41.7m, a 3.5% YoY rise from THB 40.3m, he said.

Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer (CEO) of JWD, added that JWD targets greater levels of gross profit margins and overall performances this year and that, since late last year, it has been using the funds raised from sale of four freehold cold storage and Datasafe document storage facilities (approx. THB 950m, after transaction costs and expenses) to make new investments, including executing mergers and acquisitions, joint venture and other investment deals. He also said that the company is conducting due diligence reviews in connection with a number of opportunities to invest in logistics and connected businesses that could produce excellent returns.

They expressed confidence that the returns generated from the investments made or to be made with the said funds will more than fully cover the costs incurred in relation to rent payments to AIM Industrial Growth Freehold and Leasehold Real Estate Investment Trust, or AIMIRT. In 1Q2018, as part of its move to become a regional food supply chain operator, JWD reached an agreement to acquire a 60% stake in Chi Shan Long Feng Food Co., Ltd., or CSLF, a Taiwan-based food service firm that owns ready-to-eat frozen food brands as well as imports and sells several brands of food products in the Taiwanese market. On completion of the share transfer, it expects to earn approx. THB 50m revenue per month from the investment in CLSF.

JWD is also going to begin receiving its share of profit for its 31.85% equity stake in Adib Cold Logistics, or ACL, an Indonesian cold storage and transport firm based in Jakarta. The projected level of profit sharing is approx. THB 1.5m to THB 2m per quarter, starting May 2018. In addition, it is conducting feasibility studies on a number of investment projects in Thailand and other Asean countries that could improve its revenue generation capacity and profitability and allow it to achieve a revenue growth target of 10% this year.