SCGJWD Logistics PCL (SJWD) announced robust first-quarter operating results after consolidating the February-March financial statements of SCG Logistics Management Co., Ltd. (SCGL) to its bottom line. The integration has boosted SJWD's revenues for January-March 2023 by 250% over the same period last year to 4,942.1 million baht and raising net profit by 84% to 231.2 million baht. The sharply improved results stemmed from increased volumes of the original business and broader income base. The company sees the trend of expanding business in the second quarter of this year driven by many factors including the undertakings of 'Cross Sales' and 'Up Sales', the rising transport of electric vehicles and growing cold storage warehouse requirements. Preparations are underway for SJWD to issue new debentures to raise funds for its investment expansion and refinancing purpose.

Dr. Eakapong Tungsrisanguan, Chief Financial Officer of SCGJWD Logistics Public Company Limited (SJWD), the largest integrated logistics and supply chain service provider in the ASEAN, said SCGL's financial reports have begun to consolidate with JWD for the first time in February following the conclusion of a share swap in the month as part of a merger of the two entities. As a result, the company posted a 250% jump in the first-quarter revenue to 4,942.1 million baht with net profit leaping 84% to 231.2 million baht.

The growth was due to the original business base with increased work volumes and an extended revenue base after the merger. The businesses with outstanding revenues in the first quarter were: (1) The logistics business with revenue of 2,478.4 million baht, up 666% from the same period last year, resulting from the expansion of cross-border delivery services, multimodal transport and more haulage of goods in the Siam Cement group (SCG). (2) The warehousing businesses encompass storages for general goods, cold products, hazardous items and chemicals, and car storage and management services, with revenues edging up 45% to 817.7 million baht, fuelled by greater requirements from electric vehicle and SCG. (3) The international business revenue soared 1,032% to 495.6 million baht, resulting from the integration of income from Cambodia, Indonesia, the Philippines, Lao PDR and Myanmar earned by SCGL. (4) The logistics infrastructure management business reported a 336% increase in revenue to 110.3 million baht, due to the integration of revenue from SCGL's Map Ta Phut and Phra Pradaeng ports operations which added to barge terminal and rail yard management at Laem Chabang. In addition, there was new revenue from the provision of freight forwarder services after the merger.

Meanwhile, the businesses under the merger recognised a handsome profit sharing in the first quarter. Among them were Alpha Industrial Solutions which provides warehousing, international shipping port business in Laem Chabang of ESCO, serving the PPSP Industrial Estate in Cambodia with increasing revenue from land sales in the industrial park, auto parts logistics service business under the Siam JWD Logistics Co., Ltd., and PACT cold storage warehouse joint venture with subsidiaries of Thai Union Group Plc.

The CFO said that the outlook for the second quarter of 2023 is for a continued upturn due to rising works after the merger, the undertakings of the 'cross sales' and 'up sales', the expansion of the customer base, and the growing amount of the electric vehicle transport service. Furthermore, the cold storage warehousing, a joint venture business, has seen more tenants and there has been an expansion of the warehouse tenant base at Alpha Industrial in the area of Bangna km. 22. The company will also incorporate SCGL's full second-quarter financial figures to its reports in the quarter.

In another development, SJWD is mobilising funds to support its business expansion plans after the merger. The firm is preparing to issue a new batch of debentures worth 15 billion baht, up from 3,000 million baht planned earlier, for use in new investment and refinancing, subject to an approval from shareholders. The credit rating for the proposed SJWD debentures is currently under consideration by a credit rating agency. The revised rating will have a positive impact on costs and lowering financial expenses.