Triple i Logistics reports outstanding performance in Q1/2019 with net profit up 65.5 % in line with business expansion strategy via acquisition and joint venture
Triple i Logistics achieves outstanding performance in Q1/2019 with Bt42.9 million net profit, up 65.5 percent from Bt25.9 million registered in the same period last year, thanks to the company’s business expansion strategy via acquisition and joint venture. CEO Tipp Dalal anticipates bright prospect in Q2/2019 after the end of low season of export and import business, maintaining that Triple i Logistics will see 20 percent increase of revenue this year.
Mr. Tipp Dalal, Chief Executive Officer of Triple i Logistics Public Company Limited (iii), disclosed that the company recorded the total revenue of Bt682.6 million in the first quarter of 2019, up 13.2 percent from Bt603.0 million registered in the corresponding period last year. The net profit topped Bt42.9 million, surging 65.5 percent from Bt25.9 million in the first quarter of 2018, due to the growth of the company’s core business and its success in business expansion via acquisition and joint venture.
In the first quarter of 2019, the company’s air transport business generated Bt547.0 million of revenue, up 12.3 percent year-on-year due to larger volume of services mainly because the company has served as General Sales Agent (GSA) for airlines. Triple i Logistics has steadily increased the service routes since the middle of 2018. Additionally, the company begins to realize profits from an investment in Around Logistics Management Co., Ltd. of Hong Kong in March, and expects to fully realize profits in the second quarter of this year.
Meanwhile, the company’s sea and land transport business has enjoyed a rise of freight services when compared to the same period last year. Moreover, Triple i Logistics has received the profit sharing from its investment in CK Line (Thailand) Co., Ltd. and ECU Worldwide (Thailand) Co., Ltd. In the second quarter of 2019, the demand for sea freights from Rizhao Shipping Lines is expected to increase after Port Authority of Thailand signed a Sister Port Agreement with Port of Rizhao, People’s Republic of China, presenting a golden opportunity for cooperation in international trade and cargo service.
The company’s logistics management business in the first quarter of 2019 generated the revenue of Bt48.3 million, rising by 39.2 percent compared to the corresponding period last year, due to an increase of key accounts. Hence, international air and sea transport, related logistics, cargo transport and delivery services to cater to e-commerce business, have increased.
Mr. Tipp added that in the first quarter of 2019, the company’s logistics service in handling hazardous chemicals and dangerous goods recorded the sales of Bt133.4 million, increasing from the previous quarter due to a rise of overall logistics services for chemical industries and an improved business sentiment for hazardous chemical handling services and sales of dangerous goods packaging. Moreover, the company has gained the profits from its investment in acquiring DG Packaging Singapore Pte., Ltd. (DGPS) in April this year. DGPS has begun offering new services namely DG Acceptance Progress to inspect and accept dangerous goods at the international airport in Singapore.
In the second quarter of 2019, the company expects the sentiment for air and sea cargo business as well as related logistics service to improve. In particular, the volume of freight transport service will significantly increase from the middle to the end of the second quarter of 2019 because it is the beginning of the high season of export and import business.
“On the business outlook this year, Triple i Logistics will continue expanding our core business and monitoring the operating results of companies that Triple i Logistics has acquired and formed business alliance with. We expect sales of the company to increase 20 percent from Bt2,829.06 million recorded last year,” Mr. Tipp concluded.