Photo credit: J&T Global Express
A quarter after going public, logistics giant J&T Global Express has posted a positive adjusted EBITDA for the first time, hitting US$146.7 million for full-year 2023. This comes as its China business turns profitable three years after entering the market.
Best known for its last-mile delivery service, J&T credited the growth to a 29% year-on-year increase in parcel volume across all of its markets globally. The figure stood at 18.8 billion parcels in 2023.
The company also acknowledged that the market has improved in 2023, after a sluggish economy in 2022 due to rising inflation.
Business in Southeast Asia continued to be J&T’s biggest profit driver after bringing in US$375.7 million in adjusted EBITDA for 2023.
Meanwhile, the China business turned profitable for the first time in 2023, with US$30.7 million in adjusted EBITDA for the year.
J&T noted how social commerce has become a “growth engine,” benefiting all its delivery services. “As an emerging model of ecommerce, social commerce has successfully led the transformation of consumer behaviors,” it said in its annual report.
The company added that it has also started applying strategies from its China business to its operations in Southeast Asia, allowing it to improve its operational efficiency in the region.
“It’s a strategy that has been proven effective,” the company said, highlighting the “11.8% year-on-year decrease in unit (parcel) cost in SEA in 2023.”
Citing data from consumer research firm Frost & Sullivan, J&T said that its market share in Southeast Asia reached 25.4% of parcel volume, the largest in the region. Meanwhile, the equivalent figure for its China business is 11.6%.
Founded in 2015 in Indonesia, J&T has since expanded to 13 countries. In 2020, it launched its services in China under the Jitu Express brand, with the firm acquiring the parent of Chinese express delivery player Fengwang Express in March 2023.
J&T raised over US$451 million from its IPO in October 2023. The company said at the time that it will use the funds for improvements on its current infrastructure and for its entry to new markets.
See also: Key takeaways from J&T’s prospectus: rapid China growth offsets slowing SEA numbers
Editing by Miguel Cordon and Lorenzo Kyle Subido
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