Solidifies its main place in Southeast Asia with rising market share, whereas its parcel quantity progress in China outpaces the trade
HONG KONG, Aug. 20, 2024 /PRNewswire/ — J&T International Specific Restricted (“J&T Express” or “J&T” or “the Company”, inventory code: 01519), a world logistics service supplier, introduced its 2024 interim outcomes for the primary half of 2024 (“H1 2024” or “the Period”). Within the first half of the 12 months, J&T’s income reached US$4.86 billion, representing a year-over-year (“YoY”) improve of 20.6%. Income of its core enterprise, categorical supply providers, reached US$4.74 billion, marking a YoY improve of 33.7%. Gross revenue confirmed a YoY improve of 176.8% to US$540 million.
In H1 2024, all of J&T’s revenue metrics swung to optimistic. The Firm reported a internet revenue of US$31.026 million, a major turnaround in comparison with the lack of US$670 million over the identical interval final 12 months. Adjusted internet revenue was US$63.248 million, in comparison with a lack of US$260 million over the identical interval final 12 months. Adjusted EBITDA soared by 795.6% to succeed in US$350 million. Adjusted EBIT additionally turned optimistic and reached US$120 million, underlining a wholesome and sustainable stage of profitability.
Through the Interval, J&T’s complete parcel quantity elevated by 38.3% YoY to 11.01 billion. The enterprise scale of all working areas continued to increase, with parcel quantity persistently attaining double-digit progress. In Southeast Asia (“SEA”), parcel quantity elevated by 42% YoY to 2.04 billion, elevating its market share to 27.4%. In China, parcel quantity grew by 37% to eight.84 billion. In newer markets resembling Saudi Arabia and Mexico (“New Markets”), parcel quantity surged roughly 64% to 140 million.
Dylan Tey, Chief Monetary Officer of J&T Specific, commented: “In the first half of 2024, J&T’s total revenue increased by over 20% YoY, primarily driven by the growth in express delivery services across 13 countries. With the business in China achieving profitability for the first time, the Company’s adjusted EBIT turned positive for the first time. We maintained a healthy and sustainable profitability in Southeast Asia. In New Markets, we achieved a significant increase in revenue and reduction of EBIT loss, driven primarily by strong parcel volume growth, as well as continuous management refinement and operational optimization.”
China’s parcel quantity progress leads the trade; value per parcel discount drives adjusted EBIT to profitability for the primary time
Through the Interval, J&T’s market share continued to rise, with a 37% YoY progress in parcel quantity outpacing its friends. J&T’s market share, by way of parcel quantity in China, reached 11%, up 1.1 proportion factors YoY. This was primarily pushed by J&T seizing the expansion alternatives introduced by the fast progress of social e-commerce and enhancing buyer acquisition with cost-effective providers. On the similar time, J&T continued to discover its enterprise improvement in China’s lower-tier markets, cooperating with a variety of e-commerce platforms to undertake consolidation supply enterprise focusing on at distant areas, thereby serving to e-commerce distributors and e-commerce platforms to increase to areas that had been initially troublesome to succeed in.”
Within the first half of the 12 months, J&T income within the Chinese language market was roughly US$3 billion, a year-on-year improve of about 36%. The adjusted EBITDA reached US$200 million, and the adjusted EBIT turned optimistic for the primary time, reaching US$59.595 million. That is primarily as a result of Firm’s comparatively steady income per parcel within the first half of the 12 months, with the unit value per parcel of categorical supply persevering with to say no. Particularly, the unit value per parcel dropped by about 6% to US$0.32. Benefited from to the continual implementation of refined administration and operational optimization in every course of in China, which has frequently enhanced the power and effectivity of our complete community.
Sustaining its lead in SEA for 4 consecutive years with rising market share; frequently optimizing service high quality
J&T’s full protection and well-established logistics community in SEA, in addition to its cost-effective providers and robust buyer relationships, have continued to function aggressive benefits. Consequently, the Firm’s parcel quantity within the area elevated by 42% YoY. J&T’s market share reached 27.4%, up 2 proportion factors in comparison with 2023.
In SEA, J&T continues to grab alternatives within the e-commerce market and actively develop non-e-commerce platform prospects. The Firm additionally advantages from each the general rise in e-commerce quantity and the emergence of social commerce, whereas sustaining a robust dedication to service high quality. In H1 2024, the Firm’s common parcel supply time in SEA was shortened by 13.8% YoY.
Within the first half of 2024, income of the Firm’s SEA operations elevated by 22% to US$1.52 billion, adjusted EBITDA grew by 13% to US$210 million, and adjusted EBIT grew by 46% YoY to succeed in US$130 million.
New Markets enterprise maintained fast progress and actively expands native e-commerce buyer base
J&T continues to penetrate new markets, quickly increasing its enterprise scale. The quantity of packages in J&T new markets is rising at a excessive pace. Whereas sustaining shut cooperation with Chinese language cross-border e-commerce platforms, we’re actively growing and sustaining good relationships with main native e-commerce platforms resembling Midday within the Center East and Salla in Saudi Arabia. On the similar time, the demand for parcel providers from particular person prospects and business organizations in new markets is growing. To higher serve this want, we have now launched the J&T SPEED product within the Center East.
In 1H 2024, income from new markets reached US$290 million, representing a close to 1.2x YoY improve. This progress was fuelled primarily by a 64% YoY surge in regional parcel quantity. Through the Interval, gross revenue turned optimistic, reaching US$35.022 million, whereas the adjusted EBITDA loss narrowed considerably to US$7.84 million in comparison with the identical interval final 12 months.
Proceed to Improve Service Expertise: Solidifying the Path to International Growth
J&T is dedicated to offering prospects with an enhanced logistics service expertise by constantly constructing its personal sorting facilities, enhancing the effectivity of self-operated transportation fleets, and investing in automated tools throughout numerous markets. As of 30 June 2024, the Firm had roughly 8,000 community companions and round 19,900 shops. The Firm operated 237 sorting facilities outfitted with 254 automated sorting strains. Its transportation community comprised over 4,100 line-haul routes, using greater than 9,900 autos, together with over 5,700 that had been company-owned.
Fan Suzhou, Government President of J&T Specific, said: “We achieved profitability for the first time during this financial period, laying a more solid foundation for the Company’s healthy and long-term development. Our strategic goal is to build an express delivery network that serves countries around the world, catering not only to international e-commerce platforms but also to local e-commerce and non-platform customers. This will enable us to establish long-term competitive advantages through a comprehensive network, cost-effective solutions, and excellent services. Looking ahead, we will closely monitor global market dynamics and carefully select the timing and methods for entering related markets. We firmly believe that through hard work and continuous innovation, we will better serve global customers and achieve J&T’s long-term growth objectives.”
About J&T Specific
J&T Specific is a world logistics service supplier with main categorical supply companies in China and Southeast Asia, the biggest and fastest-growing market on the planet. Based in 2015, J&T Specific’ community spans 13 international locations, together with Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the UAE, Mexico, Brazil and Egypt. Adhering to its “customer-oriented and efficiency-based” mission, J&T Specific is dedicated to offering prospects with built-in logistics options via clever infrastructure and digital logistics community, as a part of its world technique to attach the world with larger effectivity and convey logistical advantages to all.
