Kerry Logistics posts net profit rise in 2018

posted on 29th March 2019 by Justin Burns
Kerry Logistics posts net profit rise in 2018

Hong Kong based Kerry Logistics has recorded double-digit rises in turnover, core operating profit and core net profit in 2018 and said Asia remained the main earnings driver.

Turnover surged by 24 per cent to HK$38,139 million (2017: HK$30,788 million), while core operating profit rose by 11 per cent to HK$2,364 million (2017: HK$2,128 million) and net profit climbed by 12 per cent to HK$1,326 million (2017: HK$1,183 million).

The International Freight Forwarding (IFF) business recorded a seven per cent increase in segment profit to HK$549 million (2017: HK$511 million).

Kerry Logistics managing director, William Ma said: “Global economic growth moderated in 2018. The US-instigated trade tension, in particular with Mainland China, reverberated far and wide, casting uncertainties over the global trade landscape.

“In contrast, the economic growth in emerging Asia, specifically in the Southeast Asian countries, continued its strong momentum. With an unparalleled network in Asia, Kerry Logistics is well-positioned to capitalise on the robust growth in the region.

“Increasing demand in intra-Asia trade and e-commerce business accelerated the Group’s IL businesses. We recorded a double-digit increase in turnover, core operating profit, and core net profit in 2018, achieving positive growth for the ninth consecutive year.”

Kerry Logistics said stronger growth is anticipated to persist in Asia, particularly in Southeast Asia and India, owing to increasing domestic consumption and rising investment. Leveraging its established network in Asia to take advantage of the booming intra-Asia trade, the Group’s business growth in Asia is expected to maintain in 2019.

Chairman, George Yeo added: “Despite uncertainties, Kerry Logistics did well in 2018 achieving double-digit growth. Looking ahead, we see three major trends affecting global logistics.

“First, China’s market will continue to grow and become the biggest in the world. Kerry Logistics will broaden and deepen its reach in China selectively.

“Second, strategic rivalry between China and the US will continue for years to come and disrupt existing global supply chains. In order to serve our customers well, Kerry Logistics must be able to offer a range of network solutions to them.

“Third, technology is steadily disrupting all aspects of the logistics industry. Kerry Logistics will give emphasis to the use of information technology, blockchain and AI wherever practical in warehouse, fleet, freight, contract, and e-commerce management. We will stay nimble and agile even as our network grows in response to changing threats and opportunities in Asia and the world.”