Maintains Solid Growth Despite Adverse Market Conditions
2014-03-14 Hong Kong
Kerry Logistics Network Limited (“Kerry Logistics” or together with its subsidiaries, the “Group”; Stock Code 636), a leading logistics service provider in Asia, today announced the Group’s annual results for 2013 – its first set after its successful IPO in December 2013.
Group’s Financial Highlights
- Turnover up 3.5% to HK$19,968.7 million (2012: HK$19,294.8 million)
- Core net profit up 8.7% to HK$886.4 million (2012: HK$815.7 million)
- Profit attributable to the Company’s shareholders amounted to HK$1,834.5 million (2012: HK$1,069.4 million)
- Segment profit for Integrated Logistics business up 11.5% to HK$1,271.9 million (2012: HK$1,140.7 million)
- Segment profit for International Freight Forwarding business up 9.4% to HK$328.5 million (2012: HK$300.2 million)
- Final dividend of HK$0.11 per share recommended
William MA, Group Managing Director and Executive Director of Kerry Logistics, said, “Last year was a good year for Kerry Logistics. We launched the largest IPO on the HKEx in 2013 by market capitalisation for a home-grown company based in Hong Kong. The response to our IPO was very positive. Our results for 2013 met the commitment we made at our listing, with our business segments delivering solid results despite challenging market conditions. This is the result of many years of hard work by our people all over Asia and beyond.”
Integrated Logistics—Expanding to Fuel Growth
In 2013, the Integrated Logistics (IL) segment recorded healthy growth on the back of growth in PRC and Southeast Asia, and with more higher-margin value-added services and new customer wins. Kerry Logistics manages approximately 39 million square feet of logistics facilities located mostly in Asia, of which approximately 22 million square feet are self-owned.
In the PRC, the Group manages 11 million square feet of logistics facilities. During the year, it completed construction of three new logistics centres in Chongqing (Phase 2), Wuxi and Xiamen with a total GFA of 1.5 million square feet, with operation started in the second half of 2013. The second phase of the expansion is ongoing in Kunshan, while new facilities are under construction in Zhengzhou and Chengdu.
The Hong Kong logistics division secured several major new customers in 2013, which boosted its bottom line for the year; while in Taiwan, Kerry TJ Logistics Company Limited delivered strong results for the year through expanded service offerings, continuous service innovation and enhancement, riding on the growth of local consumption.
Within ASEAN, Thailand and Vietnam continued to fuel growth for the Group. In Thailand, the third phase of expansion works at the Kerry Siam Seaport were completed. A customised logistics centre was also built in Rayong Province to serve automotive-related factories, while a new distribution centre was planned near Suvarnabhum International Airport to serve as the Bangkok hub to support the nationwide distribution network. In Vietnam, the Group offers a total GFA of over 1 million square feet of warehouses, as well as a comprehensive range of nationwide less-than-truck-load and international express services. During the year, the Group’s new 371,000 square feet regional headquarters and logistics hub in Singapore became fully operational, supporting regional clients with a full range of IL services.
Kerry Logistics operates a highly flexible asset-ownership model which enables the Group to optimise the utilisation of facilities, so that customers can enjoy greater reliability and product security. This is highly valued by customers in Asia and helps to differentiate Kerry Logistics from its peers.
International Freight Forwarding—Resilient Against Market Trends
The International Freight Forwarding (IFF) operations remained stable in 2013 despite the weak performance in major trade lanes. During the year, the Group restructured its operations on Continental Europe, while refocusing on niche segments and locations. To strengthen the business network, Kerry Logistics acquired majority stakes in companies in Sweden, Brazil and Mexico during the year to boost the performance of the IFF business.
George YEO, Chairman of Kerry Logistics, said, “The medium and longer-term outlook for Asia’s logistics industry remains bright. We see opportunities for expansion and growth for Kerry Logistics with changes in manufacturing and consumption undergoing across Greater China and ASEAN, which will drive demand for complex logistics solutions. E-commerce logistics is expected to play a more important part in our Integrated Logistics business. Leveraging our extensive ground network, strong order fulfillment capabilities and innovative supply chain technology, we are ready to ride on the rapid growth of e-commerce and drive faster growth for the Integrated Logistics business. Kerry Logistics remains on track to deliver solid growth and returns to its Shareholders, as the leading Asia-based logistics service provider.”