Kerry Logistics on the up in 2017

27 / 03 / 2018

Kerry Logistics saw profits and revenues improve last year on the back of demand growth in Asia.

The Hong Kong-headquartered freight forwarder registered a 28% year-on-year increase in revenues in 2017 to HK$30.8bn, while its net profit was up 7% to HK$1.2bn.

Its freight forwarding business saw profits for 2017 increase by 14% year on year to HK511m on the back of a 41% surge in turnover.

Improvements were driven by its acquisition of APEX in the US and overall volume growth. Despite a stable increase in cargo volume, rising freight rates in 2017, due to carrier consolidation, alliance shuffle and capacity reduction, compressed the profit margin of the IFF division.

The integrated logistics division saw profits improve by 12% to HK$1.8bn on the back of global business growth and strong performance in its Thailand business.

Kerry Logistics group managing director William Ma said: “The global economic growth has been on an upswing, riding on the recovery in investment, manufacturing, and trade activities.

“The overall performance of Asia remained robust, driven by pronounced external demand and rising domestic consumption.

“Kerry Logistics performed better in 2017 second half when compared to first half, buoyed by the continued strength in global e-commerce, the sound performance of APEX in the Americas, and the accelerating growth of our express business in Thailand.”

Kerry Logistics Chairman George Yeo added: “Responding to the needs of our customers and the global economy, we continuously improve our speed of response, turning it into a competitive advantage.

“We are also widening our network in order to serve and provide our customers with flexible total solutions.

“With the addition of Globalink Logistics and Lanzhou Pacific Logistics, we now have the strongest road and rail freight network across Eurasia.

“The deepening and widening of our capabilities position us well for rapidly-growing cross-border e-commerce which is facilitated by better physical connectivity and greater international cooperation.

“As we continue to bring in catalysts to drive the scale, volume and efficiency of our global IFF network, the Group is optimistic to deliver sustainable results.

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