ZTO Express Reports Strong Fourth Quarter and Full Year Results for 2024 with Significant Growth in Parcel Volume
ZTO Express Annual Financial Highlights
ZTO Express (Cayman) Inc. (NYSE: ZTO), one of China's premier express delivery companies, reported its unaudited financial results for the fourth quarter and fiscal year ending December 31, 2024. In a year marked by robust growth, the company saw its annual parcel volume soar to an impressive 34 billion.
Performance Overview
In terms of revenue, ZTO Express achieved significant growth with total revenues reaching RMB 44.28 billion (approximately USD 6.07 billion) for the fiscal year, an increase of 15.3% from the previous year. This growth was primarily driven by a 12.6% rise in parcel volume. The fourth quarter alone contributed RMB 12.92 billion (USD 1.77 billion) in revenue, reflecting a remarkable 21.7% increase year-over-year.
The company’s gross profit also demonstrated a positive trajectory, reaching RMB 13.72 billion (USD 1.88 billion) for the year, a 17.6% improvement from 2023. Notably, during the fourth quarter, ZTO recorded a gross profit of RMB 3.76 billion (USD 515 million), which was a 20.2% increase from the same period in the previous year.
Substantial Income Growth
Net income for ZTO reached RMB 8.89 billion (USD 1.22 billion) for the full year, marking a 1.5% year-over-year increase. Additionally, adjusted net income showed an even stronger performance, climbing 12.7% to RMB 10.15 billion (USD 1.39 billion).
In the fourth quarter, net income amounted to RMB 2.45 billion (USD 335.2 million), a 10.7% increase compared to the previous year's quarter. Adjusted net income for the same period saw an even greater spike, up 23.4% to RMB 2.73 billion (USD 374.5 million).
Looking Ahead
As the domestic economy in China begins to recover, the express delivery sector has enjoyed a relatively strong growth trajectory. The average daily retail parcel volume for ZTO exceeded 7 million, up nearly 50% year-over-year, underscoring the company’s strategic focus on enhancing its revenue mix.
CEO Mr. Meisong Lai expressed optimism regarding the future, estimating a continued industry growth rate of around 15% in 2025. He emphasized the company's commitment to quality, volume, and net profit improvement as key priorities moving forward. CFO Ms. Huiping Yan highlighted a 13 cents increase in the average selling price (ASP) per parcel, despite ongoing pressure from retail pricing.
Enhanced Operational Metrics
The company also expanded its operational footprint. As of December 31, 2024, it operated over 31,000 pickup and delivery outlets with more than 6,000 direct network partners. ZTO also reported its number of self-owned line-haul vehicles over 10,000, aligning with its strategy to maintain a comprehensive and efficient operational network.
In conclusion, ZTO Express continues to build on its foundation of reliability and customer satisfaction, achieving substantial growth and positioning itself strategically for another promising year ahead.