JWD showcases outstanding performance with Q3/2021 earnings of 1,388.1 million baht, jumping 39.7% over the same period of last year. New highs were recorded for three consecutive quarters, with net profit of 139.1 million baht, up by a whopping 91.9% from last year. This year’s revenue is expected to exceed the original goal of 5,000 million baht, pushing up profit. Its recognized income from 15% of shares in ESCO and from its warehousing business in Min Buri in partnership with MyCloudFulfillment, the leading online warehousing start-up, will boost gain even more. Other lines of business are also expected to grow further after the country is opened and the lockdown lifted. Current high energy prices will have minor impact because freight transportation contributes only 15% of overall revenues while price adjustment has been agreed with customers.

Dr. Eakapong Tungsrisanguan, Chief Financial Officer, JWD InfoLogistics Public Company Limited, ASEAN’s recognized expert in logistics and supply chain, reports that the Q3/2021 performance continues to grow strongly, making new highs for three consecutive quarters with revenue topping 1,388.1 million baht, up by 39.7%, and net profit of 139.1 million baht, up by 91.9%, over the same period of last year. Both revenue and net profit exceed those of the 2nd quarter with revenue of 1,281.9 million baht and net profit of 115.5 million baht. The company’s other lines of business during the past three quarters have also done well. They are as follows:

(1) Freight transport generated revenue of 237.6 million baht, a jump of 114.4% from the same period of last year, due to recognized revenue from the acquisition of VNS Transport Company Limited, a provider of auto parts transport; (2) Cold storage generated revenue of 214.9 million baht, growing 10.7% from last year with an occupancy rate of over 80%; (3) Hazardous goods storage and management services generated 156.3 million baht, up 43.5% from last year, due to longer duration that customers used the services; (4) Automobile storage and management services generated 107.1 million baht, up 14.4% from last year; (5) General warehousing generated 98.7 million baht, up 10.0% from last year; (6) Moving services generated 69.2 million baht, growing by 46.3% from last year. Logistics infrastructure management and self-storage services have experienced an outstanding growth rate as well.

In a similar vein, the company’s foreign investments have yielded positive returns. For instance, an investment in CSLF, a food service company in Taiwan, generated 349.9 million baht of revenue, a growth rate of 29.5% from the year before. Transimex, an integrated logistic service provider in Vietnam of which JWD holds 24.62% of shares, earned a net profit of 198 million baht, yielding recognized revenue proportionate to the JWD investment. The gain was made even in the face of a strict lockdown in the country due to the Covid-19 pandemic.

Meanwhile, the company’s overall performance for the first nine months this year achieved the target growth rate with revenue reaching 3,817.2 million baht, an increase of 34.1% over the same period last year, and net profit of 395.4 million baht, increasing by a massive 84.7% over the same period last year. This impressive performance came about because, on top of the strong growth of its traditional business operations, the company’s ability to expand to new lines of business makes it possible to recognize revenues and shared profits according to plans.

Mr. Charvanin Bunditkitsada, JWD’s Executive Committee Chairman and Chief Executive Officer, expresses optimism that the logistics and supply chain service sector will continue to trend upward in the year’s final quarter following the government’s decision to open the country and relax Covid-19 restrictions. He believes that the overall economic outlook in the country will be positive and it will lead to increasing demands from various business sectors for transport and storage services in response to increasing consumer demand.

“So, we expect that 2021 will yield higher revenue than our original target of 5,000 million baht, which translates into greater profit than originally expected, judging from the performance of the first nine months with an impressive yield. We expect the last quarter will be even more impressive,” Mr. Charvanin says.

He explains that the company will begin to recognize revenue from its acquisition in October of 15% stock in Eastern Sea Laem Chabang Terminal Company Limited or ESCO, a major service provider of freight containers at the Laem Chabang deep sea port in Chon Buri and at the Inland Container Depot or ICD in Lat Krabang. Revenue recognition will also come from its operation of a fulfillment warehouse in Min Buri. This is a collaborative partnership with MyCloudFulfillment, a leading start-up in online warehousing, providing one-stop storage, packing, and delivery service to meet ecommerce demand.

In the meantime, the company’s original line of business continues to experience growth. Its automobile storage and management services are picking up business as leading automobile manufacturers have started their production lines. Its hazardous goods storage and management services are expected to have steady demand as the result of continuing shortage of international freight containers. The food service business in Taiwan, which is entering the high season, will experience an increasing demand for logistics and related services.

Addressing the recent energy price rises, Mr. Charvanin says: “The increased oil prices will have little impact on our company because our main revenue comes from warehousing and relating services. Freight transport contributes only 15% of our total revenue. In any case, we have discussed the issue with our customers and come to an agreement that we may need to adjust prices if the oil price reaches a certain level. We may also outsource the transport services to our partners. So, we do not expect to be affected seriously from the oil price fluctuation.”