Thailand: Losses narrow for Kerry Express in Q3

Courier service Kerry Express (Thailand) Plc has reported improved performance in the third quarter, with quarter-on-quarter net losses falling by 8%.

The firm posted continuous year-on-year volume growth of 5%, despite lacklustre macroeconomic conditions, inflationary pressure, lower consumer purchasing power and weaker sales in the e-commerce sector.

Kerry Express chief executive Alex Ng said efforts to achieve efficiency enhancements and cost controls had decreased the cost of sales and services, which were down by 6% year-on-year and 3% quarter-on-quarter, even amidst the upsurge in diesel prices.

“The industrialisation of Kerry Express enabled us to effectively manage total costs and resources,” said Mr Ng.

“The company implemented last-mile optimisation and redundancy minimisation between hubs and distribution centres. We will continue to leverage resources to seek cost reduction opportunities and ensure sufficient supply. We expect the impact of cost reductions to accelerate and carry well into the incoming quarters.”

He said Kerry Express would maintain a sharp focus on cost controls and efficiency enhancements, as well as increase its volume base to drive earnings improvements.

Kerry Express and its owner SF International have formed a joint task force dedicated to efficiency improvements through technology, network planning, route optimisation and equipment upgrades.

“We are transplanting best practices, techniques and references from SF China,” said Mr Ng.

“We expect the task force to contribute to substantial efficiency improvements and consequential cost improvements, which will be reflected in improved earnings.”

He said apart from a recent collaboration with TikTok Shop, Kerry Express also adopted a reseller model in partnership with fourth-party logistics and Thailand’s leading retail brands, strengthening the firm’s presence in all segments.

Moreover, the number of service locations has increased to more than 37,000 nationwide, said Mr Ng.

“In line with our business diversification strategy, Kerry Cool has satisfactorily captured substantial demand and enlarged its client portfolio, including Thailand’s leading restaurant chains, reflected in substantial revenue growth,” he said.