Kerry Logistics records 10% growth in H1

Kerry Logistics records 10% growth in H1 core operating profit to HK$1,019 Million supported by strong performance in Asia and the Americas


Kerry Logistics William Ma


 

The development of an integral overland transportation network with land-bridge connectivity demonstrates Kerry Logistics’ commitment to providing new options and cost-efficient solutions to customers.

 

IL Maintains Stable Growth

The IL division delivered an 11% growth in segment profit in 2017 1H. The overall performance in Greater China remained flat. In Hong Kong, the logistics business delivered continued growth as it benefitted from contribution through new business and customer wins, while the warehousing business maintained growth after a change in client mix despite rental pressure. Weak performance of some of the key accounts in Mainland China adversely affected the Group’s business performance. Although the increased operating cost under the new labour law added pressure on 1H earnings, Taiwan’s performance is expected to improve in 2017.

 

 

The overall IL business in Asia remained strong in 2017 1H, driven by the enhancement of the Group’s service capabilities in ASEAN.

 

IFF Sustains Significant Growth

The IFF division continued to achieve significant growth in 2017 1H, fuelled by the substantial contribution by APEX in the US. As a result of the alliance shuffle, carrier consolidation and reduction in capacity, freight rates increased in 2017 1H, causing the profit margin of the IFF business to narrow, despite an increase in volume. In Europe, the acquisition of Tuvia Italia S.p.A and the launch of the new sales office in Poland further strengthened the Group’s global IFF sales and operations network.