HONG KONG: Kerry Logistics has reported a 10 percent increase in net profit for 2014 of HK$976 million on revenue of HK$21.1 billion. Operating profit rose 14 percent year-on-year to HK$1.6 billion.
The company said its integrated logistics business produced a 12 percent profit rise to HK$1.4 billion as income from its freight forwarding activity rose 11 percent to HK$378 million.
George Yeo, chairman of Kerry Logistics commented: "The integration of China's economy with its neighbors is a major trend seen by the increasing intra-Asian trade and growing cross-border logistics. The combined economy in the region is becoming the central growth pole in the world. With our unique position as 'Asia Specialist, China Focus, Global Network', we aspire to be a major logistics provider for the new Silk Road."
In Mainland China last year Kerry completed the development of two new logistics centres in Zhengzhou and Kunshan, and began construction of two more in Chengdu and Xi'an - adding 1.6 million sq. ft. to its portfolio. The company also acquired land in Shanghai to build a 1.1 million sq.ft. logistics facility which, when complete, will be its largest in the country.
In a bid to build an ASEAN-wide express network, 2014 saw the company grow its Thailand-based Kerry Express operation with the purchase of a company in Cambodia and subsequently expand its business into Singapore, Malaysia, Indonesia and the Philippines.
In Hong Kong, Kerry set up a GMP-compliant secondary packaging facility and obtained the World Health Organization's Good Distribution Practice certificate for the provision of warehousing, distribution and secondary packaging services for pharmaceutical products.
During the year, Kerry also restructured its European forwarding business and set up joint ventures in the Middle East, Canada, New Zealand and Senegal. In Indonesia Kerry formed Kerry-Puninar Logistics, a joint venture with the shareholders of PT Puninar Saranaraya (Puninar Logistics), one of Indonesia's largest logistics companies.