J&T Express Reports 147% Profit Surge, Expands Globally
J&T Global Express Ltd. has announced a remarkable financial performance for the first half of 2023, with a 147.1% increase in adjusted net profit to $156 million, compared to $31 million in the same period last year. This surge is attributed to the company’s aggressive expansion into new international markets, particularly in Southeast Asia and regions such as South America, Africa, and the Middle East.
The logistics company processed approximately 14 billion parcels during this period, marking a 27% increase from 11 billion parcels in the first half of 2022. Total revenue rose by 13.1% year-on-year to $5.5 billion, with express delivery services accounting for an impressive 97.1% of total revenue. Growth in parcel volume from Southeast Asia, China, and emerging markets in Latin America and the Middle East significantly contributed to this performance.
Strong Growth in Key Markets
According to Vice President Charles Hou, J&T has solidified its leadership position in Southeast Asia and successfully navigated the competitive landscape in China, where it handled 10.6 billion parcels, a 20% increase year-on-year. In Southeast Asia, the company saw a substantial 57.9% growth to 3.23 billion parcels, driven by a booming e-commerce sector and competitive pricing strategies. This growth allowed J&T to increase its market share by 5.4 percentage points to 32.8%, as noted by Frost & Sullivan.
Improvements in operational efficiency led to a 10.3% reduction in unit parcel costs in China, further enhancing J&T’s competitive edge. In its new markets, which include Saudi Arabia, the UAE, Mexico, Brazil, and Egypt, J&T achieved a parcel volume of 170 million pieces, reflecting a 21.7% increase year-on-year. These markets contributed $360 million to total revenue and reached positive adjusted EBITDA of $1.57 million, marking a significant turnaround from a loss of $7.84 million in the previous year.
Network Expansion and Future Outlook
As of June 30, J&T’s network comprised 6,900 partners, a decrease of 100 from the end of 2024. While the number of service points increased by 100 to 19,200, the company maintains 239 sorting centers across its operational regions. This infrastructure supports J&T’s ambitious growth plans, which began with its establishment in Indonesia in 2015 and have since expanded to include operations in 13 countries.
J&T Global Express remains committed to further expanding its presence in Latin America and the Middle East. The company’s strong financial results underscore its resilience and adaptability in a rapidly changing logistics landscape. As it continues to navigate challenges and seize opportunities in new markets, J&T is poised for a promising future in global logistics.
