ZTO Express – revenues, volumes and profits up

Chinese delivery firm ZTO Express has reported increases in both 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 ).

ZTO released a statement earlier this week where it also reported its parcel volume for Q2 was 1.493bn, an increase of 37.6% which compares favourably with the industry average in China of 30.7%.

ZTO has been investing heavily in infrastructure. At the end of June, the firm had 28,000 pickup and delivery outlets as well as more than 9300 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.”

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