Home Business amount Kerry expects 35.7% volume growth in the first half

Kerry expects 35.7% volume growth in the first half

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A line of Kerry Express delivery vehicles outside one of the company’s logistics centres.

Thailand’s leading express delivery service, Kerry Express, reported volume growth of 35.7% in the first half of 2022 year-on-year.

Revenue for the second quarter of this year was reported at 4.2 billion baht, similar to the previous quarter.

Kerry also announced that in response to rising fuel prices, the company is adopting a smart pricing strategy to achieve sustainable performance as well as greater volume growth.

This means that a fuel surcharge has been introduced to neutralize this impact, although it is subject to adjustment depending on the evolution of diesel prices and will eventually be lifted when fuel prices return to normal.

Meanwhile, Kerry said he was strictly executing cost-cutting programs, including redesigning operations to standardize the last-mile process with centralized control for long-term profitability and productivity optimization.

Kerry expects the impact of cost reduction to accelerate throughout 2022.

Alex Ng, Managing Director of Kerry Express, explained that although the second quarter was held back by multiple challenges, he is confident that the company will soon see a significant improvement in revenue and profit margin thanks to control initiatives. costs.

“Kerry will continue to diversify its revenues in addition to its core business to drive further growth over the coming quarters and expand our market leadership,” Mr. Ng said.

In line with Kerry’s business diversification strategy, the company announced that it has entered into a joint venture with Hive Box, China’s leading smart locker company, to establish Thailand’s first smart locker system.

The newly formed entity will offer end-to-end drop-off and pick-up solutions with the integration of advanced scanning and automation powered by Hive Box.

“Hive Box is almost the only proven locker solution in China,” Ng added.

“Kerry, joining forces with our strategic partners, will bring such unique success to Thailand with the right technology, adequate investments as well as exclusive geographic coverage,” he said.