Kerry Logistics’ freight forwarding profit increased by 40% in 2020H1
August 28, 2020: Kerry Logistics Network announced the Group’s interim results for the six months ended June 30, 2020, with a revenue increase of 10% year-on-year to HK$21,885 million, operating profit increase of 12% to HK$1,489 million and net profit jump of 26% to HK$845 million.
August 28, 2020: Kerry Logistics Network announced the Group’s interim results for the six months ended June 30, 2020, with a revenue increase of 10 percent year-on-year to HK$21,885 million, operating profit increase of 12 percent to HK$1,489 million and net profit jump of 26 percent to HK$845 million.
“Integrated Logistics business recorded a segment profit of HK$1,139 million and International Freight Forwarding business recorded HK$403 million, which represent a drop of 2 percent and an increase of 40 percent, respectively. The drop in IL segment profit is mainly due to the reduced profit contributed by a lesser number of warehouses in Hong Kong year-on-year. Should this impact be normalised, segment profit of IL business should have increased by 2 percent, including a 6 percent year-on-year growth of Hong Kong warehouse business,” said the release.
William MA, Group managing director, Kerry Logistics Network, said, “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 amidst heightened volatility and widespread downturn across industries.”
Contribution of the IFF business to the Group’s total segment profit has grown from 20 percent previously to 26 percent in 2020 1H.
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.
In response to reduced capacity in air and ocean freight, the Group utilised its unique Eurasian road and rail freight network to devise alternative solutions for customers to cope with the new situation.