Kerry Logistics is “reserving its strengths and getting prepared to play a more vital role in supporting our customers to move well ahead of the aftermath [of Covid-19]”, it said, as it announced its 2019 results.
“2019 was a challenging and turbulent year,” said chairman Kuok Khoon Hua, as the Asian forwarder reported revenue up 8% to HK41bn ($5.3bn), with core operating profit up 17% to HK$2.7bn. Net profit rose 4% to HK$1.37bn.
Kerry’s international freight forwarding business rose 13% to HK$622m.
“Global economic growth weakened considerably as international trade disputes dragged on and mainland China’s GDP growth slowed down. Social unrest in Hong Kong further impacted the local economy and affected consumer confidence, he said.
“Despite the weak product demand and lower productivity worldwide, we registered growth in revenue, core operating profit and core net profit again in 2019. Supported by our diversified business portfolio, extensive geographical coverage and broad customer mix, we were able to achieve positive growth across all regions, with 55% increase in profit attributable to the shareholders year on year.”
In Asia, segment profit rose by 22% in 2019, in part due to the strong performance of the Thailand operation. Kerry said it would have done better still if it had not continued to finance Kerry Express operations in Malaysia, Vietnam and Indonesia to the tune of HK$70m.
But William Ma, group managing director, warned: “The Covid-19 pandemic outbreak is creating global business and financial turmoil. As of today, one-third of the world’s population is under varying degrees of lockdown. The world has been switching to a more domestic-based supply chains for daily essentials.
“The group is in a relatively secure position to accommodate the strong demand for domestic logistics services, particularly in Hong Kong, Taiwan, mainland China, Thailand and some Asian countries.
“Nonetheless, when the pandemic comes under control, the global supply chain will be in chaos and the recovery is expected to be slow and painful. We are reserving our strengths and getting prepared to play a more vital role in supporting our customers to move well ahead of the aftermath.”
