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Mixed bag of results for Kerry Logistics

[ March 29, 2023   //   ]

Hong Kong-based Kerry Logistics Network says its annual revenue in 2022 increased by 10% to HK$86,649 million (2021: HK$78,955m, excluding discontinued operations).

Core operating profit dropped by 12% to HK$4,790m (2021: HK$5,441m) but core net profit increased by 11% to HK$3,572m (2021: HK$3,220m).

E-commerce and Express (E&E) business recorded a segment loss of HK$826m (2021: profit of HK$41m) while International Freight Forwarding (‘IFF’) had a  profit of HK$4,703m (2021: HK$4,825m), which represents a slight drop of 3%.

The E&E division registered a drastic decline in its segment profit due to the intense competition Kerry Express Thailand faced in 2022. A series of restructuring and lean programmes has been launched to improve profitability. The loss is expected to narrow in 2023.

In freight forwarding, Asia exports plunged in the second half of 2022 as global demand for finished products and purchase orders started falling. Coupled with a swift increase in both ocean and air freight capacity, freight rates tumbled from unprecedented highs within a short period of time, putting the global freight forwarding sector under tremendous pressure. Nonetheless, the IFF business was able to maintain its profit margin at a similar level as the previous year and will continue to actively look for new business opportunities.

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