ZTO profits and revenues up in Q2
China’s ZTO Express has reported an increase in both its profits and revenues for the second quarter (Q2). Revenues for the quarter were RMB2,971.4m ($438.3m), up 29.9% on Q2 2016, and gross profit was up 35.8% at RMB1,123.9m ($165.8m). Adjusted EBITDA was up 46.6% at RMB1,104.6m ($162.9m).
In a statement issued yesterday (22 August), ZTO also reported that its parcel volume for quarter was 1,493m, which was an increase of 37.6% (compared to the industry average of 30.7%).
The scale of ZTO’s infrastructure has also continued to grow. As of 30 June, ZTO had 28,000 pickup/delivery outlets, more than 9,300 network partners, 4,380 line-haul vehicles, and 77 sorting hubs.
“Our business continued to gain growth momentum with parcel volume growth again exceeding the industry average,” said ZTO’s founder and Chief Executive Officer Meisong Lai.
“We continued to optimize parcel mix during the quarter by focusing more on more profitable parcels to improve efficiency and lower unit cost. This resulted in lower average revenue per parcel as parcel weight fell, but our margins continued to expand thanks to our economies of scale and the various cost cutting measures we have been implementing, all without affecting the high quality service we are known for.”
