Kerry Logistics 1H profit up 26pc to US$109 million, sales rise 10pc
HONG KONG's Kerry Logistics posted a 26 per cent first half year-on-year net profit increase to HK$845 million (US$109 million), drawn on revenues of HK$21
HONG KONG's Kerry Logistics posted a 26 per cent first half year-on-year net profit increase to HK$845 million (US$109 million), drawn on revenues of HK$21.8 billion, up 10 per cent.
'The Covid-19 outbreak has brought a monumental change to the fundamentals of life, from how we live and work to how we produce and consume,' said Kerry managing director William Ma.
'For now, there is no end to the pandemic in sight, nor hint of what the 'new normal' will look like. In such highly volatile and uncertain environments, logistics has maintained its unrivalled importance.
'Kerry Logistics Network's 2020 1H results clearly demonstrated our business diversity, adaptability and agility. The group has not only adapted through the pandemic but achieved promising growth amid heightened volatility and widespread downturn across industries.'
The group's integrated logistics business recorded two per cent drop in segment profit to HK$1.1 billion mainly due to the reduced profit contributed by lesser number of warehouses in Hong Kong year on year.
Should this impact be normalised, segment profit of the logistics business would have increased by two per cent, including a six per cent year-on-year growth of Hong Kong warehouse business.
'The pandemic and its resultant widespread lockdowns have caused a drastic drop in the demand in a large number of non-essential products and thus affected the global manufacturing market,' said a company statement.
'As a result, warehouse operations in Asia has been severely impacted, but a strong growth in the last-mile fulfilment and e-commerce logistics resulted in a positive growth for the integrated logistics division.'
In Asia, the group was able to record a six per cent growth in the logistics segment profit, riding on the substantial growth of its e-commerce and last-mile operations.
The 'outstanding performance' of the group's forwarding division saw its contribution to the total segment profit grow from 20 per cent previously to 26 per cent in first half 2020.
'The global freight forwarding market was among the hardest hit sectors, made more severe due to travel bans. However, Kerry Logistics leveraged its unique market position as one of the very few Asia-based global freight forwarders, with broad exposure in key gateways across continents and ability to capture new business opportunities as the pandemic spread,' the company said.