Kerry Logistics has announced its financial results for 2014. It reported a turnover of HK$21.12bn, an increase of 5.76% year-on-year. The company also recorded operating profit of HK$1.61bn, a rise of 14.08% over 2013’s result. Accordingly Kerry Logistics’ margin stood at 7.62%.
These results came from growth across all segments which the company claims was driven by successful business integration. William Ma, Group Managing Director of Kerry Logistics said, “2014 was a year of consolidation and integration for Kerry Logistics. Through organic growth, investments and strategic acquisitions, we continued to expand our operating scale, strengthen our service capabilities and extend our network coverage during the year.”
He went on, “Resources were deployed to integrate newly acquired businesses into our existing network and system, enhancing service offerings and increasing efficiencies. These efforts produced double-digit growth in both our core operating profit and core net profit, as well as improved margins in all our business segments.”
Indeed the group’s Integrated Logistics segment maintained growth on the back of expanding network and coverage in China and the ASEAN countries, with more higher-margin value-added services and new customer wins. The group’s logistics operations achieved a segment profit margin of 10% in 2014. Turnover and segment profit of the logistics operations in Hong Kong also increased by 22% and 28% year-on-year respectively.
These impressive results were mirrored in the International Freight Forwarding business, which recorded an 11% increase in segment profit to HK$378m.
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