Kerry Logistics Network Limited announced the Group’s annual results for 2022.
Group’s Financial Highlights
* Excluding discontinued operations
“2022 was a turbulent year. For the logistics industry, it was a pendulum swinging from one extreme to the other with severe supply-demand fluctuations. Inflation, rising interest rates, overstocking alongside consumers’ shift in spending patterns and overcapacity, all led to a sharp drop in the global product demand and purchase orders in 2022 2H. Despite a tough 2022, KLN Group recorded a revenue of HK$86.6bn and a core net profit of HK$3.6bn in its continuing operations riding on its unparalleled network in Asia, diversified global service offerings and cross-selling synergies with S.F. Holding in various arenas”, said William MA, Group Managing Director of Kerry Logistics Network.
The segment profit of the Integrated Logistics (IL) division recorded a 28% growth, supported by the increase in demand for pandemic-related services in Hong Kong and the rebound of production activities in Asia. Following the subsequent reopening of the Mainland of China, the IL segment is expected to maintain its growth momentum in 2023 riding on a rebound in retail sales and household consumption.
E-commerce and Express
The E-commerce and Express (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 have been launched to improve profitability, and the loss is expected to narrow in 2023.
International Freight Forwarding
Despite a highly volatile market, the International Freight Forwarding (IFF) division reported only a 3% drop in segment profit in 2022. Asia exports plunged in 2022 2H as global demand for finished products and purchase orders started falling. With a swift increase in ocean and air freight capacity, freight rates tumbled from unprecedented highs within a short period, putting the global freight forwarding sector under tremendous pressure.
Extraordinary events and world affairs continued to reshape the global supply chains. As a result, higher freight capacity and low cargo volume were spread across countries, posing increasing challenges to the freight forwarding industry. Nonetheless, the IFF business maintained its profit margin at a similar level as the previous year and will continue actively looking for new business opportunities.
Integration With S.F. Holding
The business integration and development between Kerry Logistics Network Group and S.F. Holding is progressing smoothly and successfully, strengthening KLN Group’s IL, IFF and express service capabilities, particularly those within Asia.
To enhance KLN Group’s air freight capacity and last-mile delivery capabilities, KLN Group is expanding its own-controlled air freight network and seeking new business potentials with S.F Holdings by developing new products, services and trade routes. In addition, KLN Group’s cross-border express network in Southeast Asia has also gained ground.
Source: Kerry Logistics