Dr. Eakapong Tungsrisanguan, Chief Financial Officer of SCGJWD Logistics Public Company Limited (SJWD), revealed that the 2022 operating results according to the financial statements before the integration with SCG Logistics Management Company Limited (SCGL) has shown satisfactory growth of the operations of the main businesses that were growing strongly producing a total revenue of 5,988.2 million baht, an increase of 13.1 percent from the previous year, and close to the 15 percent target. Meanwhile, the net profit was 504.3 million baht, a slight decrease from the previous year's net profit of 571.7 million baht. The main factor was in Q4/2022 when additional costs were incurred from the merger with SCG Logistics Management Co., Ltd. along with necessary additional staffing expenses, which were a special one-off expense.
The main businesses that grew strongly in 2022 were (1) The transportation business with revenue of 1,275.2 million baht, an increase of 52.6 percent due to an upsurge in general and automotive transportation contracts, particularly the transportation of various brands of electric vehicles from China as well as the leading marques from Europe that have increased significantly in the second half of the year; (2) General warehousing with a 34.2 percent increase in revenue to 521.2 million baht and the space rental rate of more than 100 percent; (3) Automotive storage and management business with revenue of 446.6 million baht, the same level as in the previous year. Significantly, revenue from this business recovered remarkably in the second half of the year due to contracts to provide transportation services for electric vehicles and the resolution of the supply chain disruption problems, resulting in revenue in Q4/2022 and net profit in December 2022 reaching new record highs, while the rate of vehicle holding space utilization increasing to 75 percent; (4) The food service business in Taiwan operated by CSLF earned a revenue of 1,312.8 million baht, an increase of 3.5 percent. This turnaround was able to generate profit for the Company.
At the same time, joint venture businesses have also shown good profits. These included Transimex in Vietnam; ALPHA, which showed a special profit arising from Japanese partner coinvesting in the warehouse project; and Siam JWD Logistics Co., Ltd. which has been awarded logistics contracts for electric vehicles. These logistics contracts have resulted in increased profits for the subsidiary in Q4/2022, and it is expected that the profit trend will continue in 2023 due to the fast growing popularity of electric vehicles.
Mr. Charvanin Bunditkitsada, Co-CEO of SJWD, said that the overall picture of the Company's performance is still strong as can be seen from the floor space rentals and the service provision for the customers which are all at good levels. Also, the trend towards increases revenue can be seen in the plans to expand investment in some businesses, such as, ALPHA's construction of additional warehouses in many areas that will eventually boost the warehouse space by 220,000 square meters, the automotive storage and management business that sees a clear uptrend due to the growth in electric vehicle industry in Thailand, the cold storage business that will realize higher revenue from the increase in rental rates in PACS and PACT projects, and at Phnom Penh SEZ Plc. (PPSEZ), a major industrial estate developer in Cambodia, that is in the process of handing over the developed land in the industrial estate to customers, and will start to realize profit from the investment this year, etc.
Moreover, the merger between JWD with SCGL will help to boost the capacity for growth along with the strength in business operation in the form of elevated revenue, the investment in business expansion both domestically and abroad, and the improved efficiency in cost management as the Company plans to expand investment as well as to evaluate other M&A opportunities in order to foster continuous growth this year.
From Q1/2023 onward, the Company will report financial statements from SCGL operations, which will show the greater strength and more sustainable growth of the Company's performance.
Source: MT Multimedia
