Hong Kong-based third-party provider Kerry Logistics Network’s full year profits jumped 13 percent to $2.12 billion Hong Kong (U.S. $269.6 million) as revenues rose 28 percent from the previous year.
Kerry Logistics Network Ltd. posted a profit attributable to the shareholders of the company of $2.12 billion Hong Kong (U.S. $269.6 million) for the full year in 2017, a 13 percent increase from the previous year, according to the company’s most recent financial statements.
The Hong Kong-based third-party logistics provider and freight forwarder said its core net profit grew 7 percent year-over-year to HK $1.18 billion on revenues that rose 28 percent year-over-year to HK $30.79 billion.
The company attributed the improved performance primarily to a strong second half that was powered by broad-based global economic growth and the resulting increase in international trade volumes, particularly in Asia.
“The global economic growth has been on an upswing, riding on the recovery in investment, manufacturing, and trade activities,” William Ma, group managing director of Kerry Logistics, said of the results. “The overall performance of Asia remained robust, driven by pronounced external demand and rising domestic consumption.
“Kerry Logistics performed better in 2017 2H when compared to 1H, 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.”
The firm’s international logistics (IL) unit, which accounted for 78 percent of total profits, saw its full-year segment profit jump 12 percent to HK $1.85 billion compared with 2016, “supported by synchronized global business growth and the lucrative performance of the group’s business in Thailand,” Kerry Logistics said.
Profits in Kerry Logistics’ international freight forwarding (IFF) segment, which accounted for the remaining 22 percent of total group earnings, grew 14 percent year-over-year to HK $511 million.
“Despite a stable increase in cargo volume, the rising freight rates in 2017 due to carrier consolidation, alliance shuffle and capacity reduction compressed the profit margin of the IFF division,” the company noted.
Kerry Logistics Chairman George Yeo said the company would continue to expand its network in the coming years in an effort to better serve the needs of its customers and attract new business, particularly in the booming e-commerce sector.
“With the addition of Globalink Logistics and Lanzhou Pacific Logistics, we now have the strongest road and rail freight network across Eurasia,” said Yeo. “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.”
Kerry Logistics delivers earnings growth in 2017
