“J&T Express Turns Profitable in H1 2024, Solidifying its Leadership in Southeast Asia”

J&T Global Express has released its financial results for the first half of 2024, and the numbers are impressive. The company reported a revenue of 4.86 billion USD, a 20.6% increase from the same period last year. Their core business, courier services, brought in 4.74 billion USD, a 33.7% jump from the previous year. Gross profit rose to 540 million USD, a substantial 176.8% increase year-over-year.

All profitability indicators for J&T were in positive territory during this period. The company reported a net profit of over 31 million USD, a remarkable turnaround from the 670 million USD loss in the same period last year. Adjusted net profit stood at more than 63 million USD, compared to a loss of 260 million USD in the first half of 2023. Adjusted EBITDA soared by 795.6% to 350 million USD, while adjusted EBIT turned profitable, reaching 120 million USD, indicating healthy and sustainable profits.

Total parcel volume for J&T grew by 38.3% year-over-year to 11.01 billion in the first half. All operating regions saw continued expansion in business scale, with parcel volumes consistently achieving double-digit growth.

In Southeast Asia (SEA), parcel volume rose 42% year-over-year to 2.04 billion, lifting market share to 27.4%. In China, parcel volume increased by 37% to 8.84 billion. In newer markets such as Saudi Arabia and Mexico, parcel volume grew by approximately 64% to 140 million.

“In the first half of 2024, our total revenue grew by over 20% year-over-year, primarily driven by the growth of our express delivery business across 13 countries,” said Dylan Tey, CFO of J&T Express. “With our China business turning profitable for the first time, the company’s adjusted EBIT also turned positive. We maintained healthy and sustainable profits in Southeast Asia. In new markets, we achieved significant revenue growth and reduced EBIT losses, mainly due to the strong growth in parcel volume as well as continuous improvements in management and operational optimization.”

Maintaining Southeast Asia’s Leading Position for Four Consecutive Years

In Southeast Asia, the company’s parcel volume grew by 42% year-over-year, with market share reaching 27.4%, a 2-percentage point increase from 2023. J&T continued to capitalize on the region’s e-commerce market development and actively expanded non-e-commerce clients. They also benefited from the overall volume increase on e-commerce platforms and social media online shopping, as the company remained firmly committed to service quality. In the first half of 2024, the company’s average parcel delivery time in Southeast Asia was shortened by 13.8% compared to the same period last year.

In Vietnam, J&T Express has a network covering all 63 provinces. According to an assessment by the Ministry of Information and Communications, J&T Express was the only delivery company to achieve a 100% on-time delivery rate for all mail items.

In the second half of 2024, J&T Express Vietnam will continue to invest in modern and large-scale operation centers in the North. State-of-the-art technologies adhering to international e-logistics standards will be applied, including smart steering wheels, DWS systems, automatic cargo matrix sorting systems, 3-layer crossbelt systems, gray-scale cameras, and automatic sensors for halting full cargo loads, among others.

Integrating smart technologies into the management and operation processes will enhance processing speed and accuracy to 99.99%. Automation will also increase operational productivity tenfold, with an impressive handling efficiency of 4-5 minutes per parcel.

New Market Business Operations Maintain Rapid Growth

J&T continues to penetrate new markets, rapidly expanding its business scale. Parcel volume in these new markets is growing at a rapid pace. The company is actively developing and maintaining good relationships with major local e-commerce platforms, such as Noon in the Middle East and Salla in Saudi Arabia.

Simultaneously, the demand for parcel services from individual customers and commercial organizations in these new markets is on the rise. To better serve this demand, J&T launched J&T SPEED in the Middle East.

In the first half of 2024, revenue from new markets reached 290 million USD, almost doubling from the same period last year. This growth was primarily driven by a 64% year-over-year increase in parcel volume in the region. Gross profit turned positive, reaching 35.022 million USD, while adjusted EBITDA loss significantly narrowed to 7.84 million USD compared to the previous year.

As of June 30, 2024, the company had approximately 8,000 network partners and 19,900 stores. J&T operates 237 sorting centers equipped with 254 automatic sorting lines. Its transportation network comprises over 4,100 transportation routes, utilizing more than 9,900 vehicles, of which over 5,700 are company-owned.

Fan Suzhou, CEO of J&T Express, commented, “For the first time, we achieved profitability in this financial period, laying a solid foundation for the company’s long-term, healthy development. Our strategic goal is to build a worldwide express delivery network serving not only international e-commerce platforms but also local e-commerce and traditional clients.”

“This will enable us to establish a long-term competitive advantage through our comprehensive network, cost-saving solutions, and excellent service. Moving forward, we will closely monitor global market dynamics and carefully select the timing and methods for entering relevant markets,” Fan added.