SCGJWD Logistics Public Company Limited (SJWD) produced outstanding performance in Q3/2024, achieving a net profit of 254.8 million baht, or 45-percent increase over the previous quarter, if excluding special profit from the investment in SWIFT at a price lower than fair value. This has been possible due to heightened profit-generating potential from various businesses and improved efficiency in cost control in regard to sales and administrative expenses. Significantly, the Company expects Q4/2024 to achieve the best performance for this year as a result of expanding customer base, increasing demand in line with the high season, and the continual momentum in efficient cost control. The long-term goal has been set to increase the net profit margin from 4.1 percent to 8-9 percent.

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, revealed that the Company’s performance in Q3/2024 showed significant growth for both revenue and profit compared to the previous quarter, with revenue totaling 6,249 million baht, a 7-percent increase over the previous quarter. At the same time, net profit topped 254.8 million baht, an increase of 45 percent compared to the previous quarter, when the operating profit was 175.4 million baht, (Excluding special profit of 339.4 million baht from the investment in Swift Haulage Berhad [SWIFT] – a price lower than fair value). This growth was primarily a result of strong profits generated by most businesses, increased demand from importers and exporters, and the Company’s ability to reduce selling, general, and administrative (SG&A) expenses by as much as 9 percent, or 51.9 million baht, over the previous quarter. In fact, this performance was in line with the Company’s strategic plan to increase the cost management efficiency following the merger with SCG Logistics Management.

Business streams that showed exponential growth in Q3/2024 were: (1) Hazardous Goods and Chemical Warehouse Business, with revenue of 167.8 million baht, an increase of 27.4 percent over the previous quarter, as a result of the volume of hazardous goods and chemicals passing through Laem Chabang Port increasing to approximately 46,000 containers from 42,400 containers in the previous quarter; (2) Transport Business, with revenue of 103.1 million baht, a hefty increase of 96.9 percent over the previous quarter; (3) International Freight Forwarding Service Business, with revenue of 438.4 million baht, an increase of 31.1 percent over the previous quarter; (4) Self-Storage Rental Business, with revenue of 30.4 million baht, an increase of 25.9 percent over the previous quarter; (5) International Businesses, with revenue of 943.7 million baht, an increase of 16.5 percent over the previous quarter; and (6) Cold Storage Business, with revenue of 265.5 million baht, an increase of 8.2 percent over the previous quarter, and the utilization rate increasing to 71.1 percent from 65.9 percent in the previous quarter. At the same time, the Vehicle Storage and Management Business benefited from the preparations for launches of new vehicle models by various automotive companies. In addition, the Company recognized higher profit sharing from Phnom Penh Special Economic Zone Plc. and recognized considerable profit sharing from investments in Transimex in Vietnam, SWIFT in Malaysia and ANI.

Moreover, where the overall performance in the first nine months of this year was concerned, the Company was able to continually increase its net profit margin from operations every quarter at 2.6 percent, 3.0 percent and 4.1 percent, respectively, from improved profit potential of various businesses together with increased SG&A control efficiency, propelled by the long-term goal to increase the net profit margin to 8-9 percent, which includes the commencement of revenue recognition from the acquisition of shares in SCG International Vietnam Company Limited (SCG Inter VN) as from Q3/2024. This has resulted in the Company achieving a net profit in the first nine months of 2024 of 933.7 million baht, an increase of 87 percent from the same period of the previous year. However, if excluding the special profit of 339.4 million baht from the investment in Swift Haulage Berhad at a price lower than the fair value, the Company would have a net profit in the first nine months of this year of 594.3 million baht, and a total revenue of 18,369.7 million baht, an increase of 4.4 percent over the previous year.

The Chief Financial Officer of SJWD stressed that the Company is determined to make Q4/2024 the year’s best quarter in terms of operating results. The Cold Storage Business is expected to achieve an average space utilization rate of 75 percent, up from an average rate of 71.1 percent shown in Q2/2024, as a result of the increased volume of chilled and frozen food storage, including at the Bangna Km.19 cold storage warehouse where a major customer has made reservation, and the Saraburi cold storage warehouse where demand for storage of poultry has to be fulfilled. Meanwhile, the Transport Business is poised to benefit from businesses entering the high season in Q4/2024. The Vehicle Storage and Management Business has been receiving more work transporting new vehicle models, while the General Warehouse Business has accepted the transfer of a new warehouse in the Laem Chabang area from Alpha Industrial Solution Co., Ltd., which has been designed according to the Green Warehouse principle and covers an area of over 18,000 square meters. For this new addition, the Company has succeeded in entering into a contract with a major customer to make use of the entire floor space.

“The Company expects to generate significant growth in the fourth quarter of this year, in addition to expanding the customer base and fulfilling increased demand. Furthermore, the Company is fully focused on continually improving the efficiency of SG&A control. It also plans to expand investment with our partner in Malaysia by adopting the successful business model in Thailand and further developing it. Last but not least, the Company is also actively considering investment opportunities in companies with good growth potential,” Dr. Eakapong concluded.