Kerry Logistics revenue up 30 percent in 2020
Kerry Logistics posted revenue of US$6.7 billion (HK$53.7b) up 30 percent over 2019, as operating income climbed 20 percent to US$420m.
March 26, 2021
By PLA Editor
Air & Cargo Services air cargo Air Cargo Asia air cargo freight Air Forwarding air freight Air Freight Asia Air Freight Logistics air freighter air freighting Air Logistics Asia Air Shipping Asia airlines cargo airways cargo asia cargo news cargo aviation integrated logistics international freight forwarding Kerry Logistics Network SF Holding William Ma
Announcing the company’s 2020 results, William Ma, group managing director of the Kerry Logistics Network (KLN) Group thanked colleagues and business partners for achieving record year in terms of revenue and core net profit. This he said clearly demonstrated the logistics company’s ‘resilience and capability to evolve through the pandemic.’
Kerry Logistics recorded revenue of US$6.7 billion (HK$53.7 billion) up 30 percent over 2019, as operating income climbed 20 percent to US$420 million (HK$3.3 billion).
Core net profit increased by 33 percent to US$230 million (HK$1.8 billion).
The freight forwarding division drove business for Kerry Logistics in 2020, making up 28 percent of the total segment profit, up 64 percent year on year. “The growth was mainly driven by high global demand for pandemic-related goods as well as production and exports from Mainland China. It created the favourable conditions for the Group to capture opportunities from the unprecedented volatile global freight market, in terms of rates, capacity and equipment availability,” the company explained.
Freight carrier Kerry Apex strengthened its trans-Pacific market position, with volume up 17 percent. It was the top NVOCC from Thailand, Vietnam, Indonesia and Malaysia to the US and number 2 in the region.
Its integrated logistics unit, meanwhile, got strong performance from Hong Kong and Taiwan, up 10 percent and 19 percent in terms of segment profit, respectively. The company had to rebound during H2 of last year in China but nonetheless the integrated logistics unit saw 6 percent profit growth.
“In Asia, the IL business sustained despite severe lockdowns across the region, driven by the switch from consumer goods business to the essential supply sectors. The Group expanded its express business to the Philippines through the establishment of a joint venture company in 2021 Q1 in which the Group has a 51% interest,” the company mentioned.
In China, Kerry Logistics started operations at its 340,000-sqft chemical logistics centre in Cangzhou in 2021 Q1, whilst its 827,000-sqft logistics centre in Qingdao is expected to complete next quarter. Expected to complete in 2022 are the 1,043,000-sqft logistics centre in Guangzhou, the 305,000-sqft chemical logistics facility in Zhangjiagang, the 644,000-sqft hub and logistics centre in Zhuhai and the 545,000-sqft bonded logistics centre in Hainan.
“Scale and technological advances are crucial for any company in this industry to retain its competitiveness over its peers and drive changes in the global logistics arena. To this end, the proposed strategic cooperation with S.F. Holding will scale up KLN Group, extending its reach and enhancing its R&D capabilities,” chief executive Ma said.
With core net profit up 33 percent from 2019 and profit attributable to shareholders US$370 million, Kerry Logistics shareholders will get dividends of HK$23.8 cents per share, payable to on 11 June 2021.