HONG KONG: August 22, 2016. Kerry Logistics has reported a three percent increase in turnover to HK$10.46 billion for the first half (H1) of 2016 and a one percent increase in net profit to HK$548 million.
"The operating environment remained tough in 2016 H1 due to flat global demand and stagnated trade flow in the logistics industry," said group managing director William Ma. "Negative currency effects caused by the strong US dollar also affected our overall performance," he added.
The company's Integrated Logistics (IL) business produced a profit of HK$799 million, down one percent for the same period last year, while its International Freight Forwarding (IFF) segment increased its contribution by 9.0 percent in HI to reach HK$208 million.
Despite a slowing economy Kerry said its IL growth in both Mainland China and Taiwan markets remained profitable. Although Thailand and Vietnam were affected by weak export demand, growth in Asia overall was supported by India's "encouraging results," it said.
Forwarding growth in H1 was mainly from South and Southeast Asia, particularly India, Singapore and the Philippines despite a "slight drop" in Mainland China, the company reported.
Chairman of Kerry Logistics George Yeo said new business in China is making up for reduced volumes from existing customers: "The Belt and Road Initiative continues to guide our overall strategy [and] we are also developing an overland transportation network for road, rail and intermodal freight services covering Central and West Asia."
Noting freight forwarding will become a more significant contributor to the company's performance for the remainder of the year, Yeo said Kerry would also strengthen its express capabilities in order to provide last-mile deliveries to an expanding e-commerce client base.