#logistics #Hong Kong #revenue growth #J&T Express

J&T Express Achieves Full-Year Profit for the First Time in 2024

In a significant milestone for the logistics industry, J&T Global Express Limited, commonly referred to as J&T Express, announced its annual results for 2024. The company not only reported a profit for the first time but also recorded impressive revenue growth of 15.9% year-over-year, bringing its total revenue to $10.26 billion. This remarkable achievement highlights J&T's robust growth trajectory and its ability to adapt and thrive amidst a competitive market landscape.

Throughout 2024, J&T Express experienced a substantial increase in parcel volume, rising by 31% to reach 24.65 billion parcels. The company's core express delivery services accounted for $9.98 billion of the total revenue, reflecting a 23.4% increase from the previous year. Notably, J&T's profit metrics turned positive for the first time, with a net profit of $110 million compared to a staggering loss of $1.16 billion in 2023.

Dylan Tey, the Chief Financial Officer of J&T Express, expressed that the company's growth in all operating regions can be largely attributed to enhanced cooperation with various e-commerce platforms and expanding partnerships with brand partners. The firm has maintained its dominant position in Southeast Asia (SEA), where it garnered a 28.6% market share, growing 3.2 percentage points from the previous year.

The SEA segment witnessed a parcel volume increase of 40.8%, hitting 4.56 billion parcels. This growth has been facilitated by J&T's strategic integration of parcels from all e-commerce platforms while also engaging non-platform parcels. The company managed to lower its cost per parcel by approximately 14.9% through economies of scale and improved operational efficiencies, resulting in steady profitability.

In China, J&T Express achieved full-year profitability for the first time, with a parcel volume increase of 29.1%, leading to a revenue of $6.39 billion, a remarkable 22.2% jump year-over-year. The company's adjusted EBITDA stood at $430 million, and the adjusted EBIT turned positive, amounting to approximately $150 million—primarily boosted by reductions in parcel cost to $0.30.

In newer markets like Saudi Arabia and the UAE, J&T continued to explore growth opportunities, where parcel volume rose by around 22.1%. Revenue in these regions reached $580 million, illustrating a significant 76.1% increase year-over-year. The company has fortified its partnerships with international e-commerce platforms, enhancing its local delivery networks amidst fluctuating cross-border policies.

Moreover, J&T has kept expanding its automated sorting facilities and refined its operational management to elevate efficiency in pickup, sorting, transportation, and dispatching processes. As of December 31, 2024, J&T operated approximately 19,100 outlets worldwide and 238 sorting centers, equipped with over 11,900 line-haul vehicles.

Charles Hou, Group Vice President of J&T Express, emphasized that the company's accomplishments in 2024 stemmed from its well-established logistics network, reliable services, advanced cost control, and productive collaborations with e-commerce platforms. Looking ahead, J&T plans to heighten investment in research and development to further enhance its logistics capabilities and fulfill the growing demand for high-quality express delivery services.

In summary, 2024 is a landmark year for J&T Express, as it not only achieved substantial revenue growth but also marked its first full-year profit, indicating a positive shift in the company's financial health and operational strategies. With its continuous focus on innovation and partnerships, J&T Express is poised for further growth and market expansion, solidifying its reputation as a leader in the global logistics landscape.