Kerry Logistics eyes Singapore expansion as H1 revenues grow
31 / 08 / 2017
Hong Kong-headquartered Kerry Logistics saw revenues “surge” in the first half of the year thanks to market growth and acquisitions.
The fast-growing logistics firm saw first-half revenues increase by 31% year on year to HK$13.7bn, while core net profit was up 5% to HK$1bn.
The revenue improvement came despite tough market conditions in teh first couple of months of the year and stemmed from a strong second quarter and acquisitions it has made, particularly to capitalise on China’s Belt and Road initiative, which aims to establish a new overland Silk Road to Europe.
Its forwarding business saw volumes grow fuelled by contributions from APEX in the US. However, margins narrowed as a result of carrier rate increases, while
In Europe, the acquisition of Tuvia Italia S.p.A and the launch of the new sales office in Poland further strengthened the division’s sales and operations network.
Looking to the future, more acquisitions are planned. Kerry Logistics chairman George Yeo said: “The Group continues to see China’s Belt and Road initiative as a major opportunity to expand our network and to drive growth in long-term profitability across Asia.
“The new acquisitions made in 2017 first half added important components to our strategic plan to become the pre-eminent logistics service provider for the new overland and maritime Silk Roads.
“We are increasing our capabilities in e-commerce and cross-border logistics in Asia. In 2017 second quarter, we formed a joint venture with a local express operator in Indonesia to tap into the booming market there.
“Singapore will be our next target for expansion. With second quarter performance much better than first quarter, we expect the momentum of recovery for the rest of 2017 to be positive.”
Kerry has been growing rapidly over the last few years through a series of acquisitions and organic growth.
The logistics giant has this year already snapped up German forwarder Multi Logistics. Last year, the company purchased the freight forwarding businesses of Bofill & Arnan, a Spanish logistics and freight forwarding company with a focus on the China, Taiwan, and India trade lanes and also upped raised its stake in Indian forwarder Indev Logistics.
In June, it purchased Globalink Logistics DWC, which specialises in the CIS rergion, and in July it acquired 50% of shares in Lanzhou Pacific Logistics (LPL) as it looks to further develop its China-Europe rail freight operations.
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