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Tag: Kerry

  • Kerry Logistics Network posts 102% growth in Core Net Profit

    Kerry Logistics Network posts 102% growth in Core Net Profit

    Kerry Logistics Network Limited (‘Kerry Logistics Network’ or together with its subsidiaries, the ‘Group today announced the Group’s annual results for 2021.

    Group’s Financial Highlights

    • Revenue (including revenue generated from discontinued operations) increased by 53% to HK$81,771 million (2020: HK$53,361 million)
    • Core operating profit increased by 88% to HK$6,229 million (2020: HK$3,320 million)
    • Core net profit increased by 102% to HK$3,692 million (2020: HK$1,828 million)
    • Profit attributable to the Shareholders was HK$7,939 million (2020: HK$2,896 million), which represents a year-on-year growth of 174%
    • Integrated Logistics (IL) business recorded a segment profit of HK$1,868 million (2020: HK$2,642 million), which represents a decrease of 29%, partly due to the disposal of the Group’s Hong Kong Warehouse and the Taiwan businesses during the year
    • International Freight Forwarding (IFF) business recorded a segment profit of HK$4,860 million (2020: HK$993 million), which represents a growth of 389%
    • Proposed final dividend of 50 HK cents per Share, to be payable on Wednesday, 8 June 2022

    William MA, Group Managing Director of Kerry Logistics Network, said, “In 2021, supply and demand mismatch, logistics bottlenecks, congested ports, labour shortage and pandemic related lockdowns and measures continued to cause endless disruptions in the global supply chain. Thanks to the unwavering support from our colleagues and partners, we managed to deliver efficient and consistent services to our customers in the face of complex and relentless challenges. We achieved a record-high revenue of HK$81.8 billion and a core net profit of HK$ 3.7 billion in 2021.”

    IL Shrank

    The segment profit of KLN Group’s IL business did not grow in line with the other segment, mainly due to a weak Asian market brought about by a series of prolonged lockdowns and other pandemic measures across Southeast Asia, severely disrupting both manufacturing and consumption related activities, as well as the required disposal of the Group’s Hong Kong Warehouse and businesses in Taiwan.

    In Hong Kong, the Group’s IL business reported a 14% contraction, with logistics operations decreasing by 4%. This was mainly due to the disposal of warehouses in Hong Kong at end-September 2021 as well as the implementation of pandemic-induced social distancing measures which has caused a depression in particular retail activities.

    In the Mainland of China, the Group’s IL business grew by 33%, mainly from the increase of manufacturing activities as purchase orders shifted back to the Mainland from many Asian countries, boosting its production and export of both components and finished products.

    In Asia, the IL division went down by a large extent. This was mainly due to prolonged lockdowns across many countries in Asia, which depressed manufacturing activities. Furthermore, pricing pressure and fierce competition experienced by Kerry Express Thailand in Thailand have also impacted on the Group’s results. The Group is expected to reclaim its dominance in key Asian markets, where profitability will gain traction starting in 2022 2H.

    Strategic Partnership with S.F. Holding

    KLN Group’s strategic partnership with S.F. Holding will give it an unparallelled advantage as Asia’s largest 3PL provider to tackle the uncertain market challenges ahead. The two parties are already collaborating in the Mainland of China to serve S.F. Holding’s clients’ overseas business needs. By 2022 Q2, KLN Group will serve as the exclusive cargo General Sales Agent (GSA) for S.F. Airlines, as well as the principal service provider outside the Mainland of China for S.F. Holding’s international express business, firmly establishing KLN Group’s position as S.F. Holding’s international arm.

    William Ma concluded, “The complex dynamic system of the global supply chain will remain sensitive to an array of different pandemic responses and measures as well as geopolitics. International freight will face another year of price, volume and capacity volatility. Inflationary pressures and material shortages along the supply side will continue to disrupt global trade for a prolonged period. Although onshoring and reshoring have been discussed widely, it is highly likely that Asia, the manufacturing base of the world, will continue to hold its ground in the next five years. KLN Group and S.F. Holding’s strategic cooperation has opened a new page for both sides. Unique yet competitive service offerings have been co-developed through the ongoing business and operation integrations. As the world is moving faster and further away from the pre-COVID market conditions, we are confident that the new KLN Group is empowered to advance through it.”

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  • Kerry Logistics Records a 194% Surge in Profit

    Kerry Logistics Records a 194% Surge in Profit

    Kerry Logistics Network Limited (‘Kerry Logistics’ or together with its subsidiaries, the ‘Group’ today announced the Group’s interim results for the six months ended 30 June 2019.

    The Group’s Financial Highlights

    ·      Turnover increased by 13% to HK$19,810 million (2018 1H: HK$17,461 million)

    ·      Core operating profit increased by 9% to HK$1,330 million (2018 1H: HK$1,216 million)

    ·      Core net profit dropped slightly by 4% to HK$669 million (2018 1H: HK$700 million)

    ·      Profit attributable to the Shareholders, including the gain from disposal of two warehouses in Hong Kong of HK$1,958 million, increased by 194% to HK$2,790 million (2018 1H: HK$948 million)

    ·      Integrated Logistics (‘IL’) business recorded a segment profit of HK$1,162 million (2018 1H: HK$1,107 million) and International Freight Forwarding (‘IFF’) business recorded HK$288 million (2018 1H: HK$235 million), which represent an increase of 5% and 22%, respectively

    ·      Special dividend of 35 HK cents per Share was paid on Tuesday, 23 July 2019. Interim dividend of 9 HK cents per Share, to be payable on Friday, 27 September 2019

    William MA, Group Managing Director of Kerry Logistics, said, “Global economic growth has markedly slowed down in 2019 1H, with weakened trade and manufacturing. The ongoing international trade disputes and unresolved negotiations have created further adverse conditions and accelerated changes in the global supply chains. Rising political and social turmoil in Hong Kong added pressure to the already softening economy. In view of the slower world economy, the Group continued its efforts in strengthening its service capabilities, expanding its network coverage and building its business scale in order to give itself a competitive advantage in adapting to the changing global logistics landscape.”

    IL Profit Rose

    Buoyed by the positive performance of its Hong Kong business and continued expansion in Taiwan, coupled with the steady growth of its operation in Asia, the Group’s IL division recorded a moderate increase in segment profit, which accounted for 80% of the Group’s total segment profit in 2019 1H

    In Hong Kong, supported by new customer wins across various industries and business growth of some of the key accounts in the fashion and food and beverage industries, the segment profit of the logistics operations remained in an upward trend by rising 18% in 2019 1H.

    In Mainland China, benefitting from shifting the focus to multiple higher-growth verticals including pharmaceutical, imported food and beverage, and automotive parts to minimize impact from global trade volatility, the segment profit of the Group’s IL business turned around in 2019 1H.

    In Taiwan, driven by Kerry Pharma and the newly acquired Science Park Logistics, the IL profit grew by 11% in 2019 1H. Kerry Pharma, as the sole certified pharmaceutical logistics provider in Taiwan, has continued to expand in the niche market. The acquisition of Science Park Logistics in January 2019 strengthened the Group’s capability in serving high-tech customers.

    In Asia, the growth momentum of the Group’s business moderated in 2019 1H. While Kerry Express Thailand continued to expand its service coverage and business scale across Thailand, the profit growth was slower. The performance of the Thailand operation remained robust. Kerry Express Thailand’s daily delivery quantity has grown to more than 1 million parcels, and the number of service points has doubled (compared to 2018 Q4) to 10,000 locations. Segment profit in Asia increased by 7% during the period. The increment was only moderate as the Group is still financing the Kerry Express operations in Malaysia, Vietnam and Indonesia, which incurred an aggregated loss of approximately HK$40 million during the period.

    IFF Volume Swelled

    Riding on the increased trade from Mainland China to other Southeast Asian countries and within Asia, the IFF division achieved a 22% growth in segment profit, which contributed 20% to the Group’s total segment profit in 2019 1H.

    Facility Portfolio Enhanced

    In Mainland China, the logistics centre in Wuhan was completed in 2019 Q2. In Taiwan, the 154,000-sq-ft transit hub in Xinshi District commenced operation in 2019 Q2, and the 430,000-sq-ft logistics centre in Guanyin is expected to complete in 2019 Q4. In Thailand, construction of Phase three of the Kerry Bangna Logistics Centre began in 2018 Q4, and is expected to complete in 2020 Q1.

    Asset Monetised

    In June 2019, the disposal of the Group’s warehouses in Chai Wan and Shatin to a subsidiary of Kerry Properties Limited was completed. The total gain of the disposal was approximately HK$2 billion. The Group will continue to actively consider opportunities to unlock the value of its assets on the balance sheet, which will provide capital for strategic investments and ongoing expansion, and crystallise value for its shareholders.

    Softening Asia Growth

    Recent events in Hong Kong are creating unfavourable conditions for the Group’s business in 2019 2H. However, the Group believes that the stronger results elsewhere in Asia should be able to offset the weak performance in Hong Kong. In particular, Taiwan will remain one of the growth drivers in Asia in 2019 2H.

    Enriching Business Mix

    Following the extension of its business into new verticals such as coffee trading and distribution, and the expansion of its service in pharmaceutical and food-related cold chain to tap into emerging business segments, the Group will keep on diversifying its business capabilities in local markets to position itself for growth opportunities in various sectors.

    Seizing E-Commerce Growth

    E-commerce has increasingly gained prevalence as a mode of consumption. In view of the strong growth impetus in cross-border e-commerce, in particular the exports from Mainland China and the intra-Asia e-commerce trade, the Group will pursue further strategic setups that will optimally deploy its resources to seize the e-commerce growth potential in the region.

    Pursuing Asset-Lighter Model

    Taking into account the positive profit growth and expansion potential in the IFF division, the Group will continue to focus on expanding its less asset-heavy IFF business both organically and through mergers and acquisitions.

    William Ma concluded, “Global economic growth is expected to remain weak in 2020, as policy uncertainties and geopolitical tensions continue to cloud the trade environment. The current political and social disquiet in Hong Kong, which is the Group’s key market, is expected to adversely impact the Group’s performance in 2019 2H. Nevertheless, the Group is in a resilient position to withstand difficult market conditions, sustained by its expanding global network and diverse range of businesses. Taking into consideration the challenging market outlook, the Group will remain watchful and keep reinforcing its foundation through enhancing its service capabilities, expanding its network presence and enlarging its business scale.”

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  • Kerry invests in Thailand operations and opens Asia’s first Meat center

    Kerry invests in Thailand operations and opens Asia’s first Meat center

    Kerry, a global leader in taste and nutrition solutions for the food and beverage industry, today announced the opening of its expanded Regional Development and Application Centre that is also designated as the first Centre of Excellence for Meat in Bangpoo, Thailand. The opening is part of a larger series of upgrades to Kerry’s Bangpoo facility, designed to increase Kerry’s local innovation pipeline as well as its research and application capabilities.

    Spanning more than 8,500 square metres, and equipped with the latest technologies, Kerry will use the state-of-the-art facility to work with local customers on all stages of their product development – from ideation to application and manufacturing – for a range of categories including meat, snacks, bakery, dairy and beverages.
    The dedicated meat centre, unveiled today, includes best-in-class taste and functional technologies, allowing Kerry to co-develop signature meat profiles based on different protein types, helping customers keep pace with the technically challenging and fast changing meat markets in the Asia Pacific, Middle East and Africa (APMEA) region. With in-house application, sensory and culinary meat experts, the centre is well positioned to develop commercially viable and innovative products at an unrivalled speed to market.

    Another upgrade to Kerry’s Regional Development and Application Centre announced today is new facilities for food and beverage brands to develop authentic, savoury tastes and flavours. Drawing on Kerry’s expertise and market-leading position in cooking methods such as smoke and grill, the fully-equipped application lab includes the latest Clean Smoke technology, for F&B brands to experiment with using smoke condensate to add a signature taste and smoke profile to meat, vegetables, dessert and even beverages.

    The additional down packing and blending lines not only double the centre’s production capacity but also provide food service customers with greater flexibility and efficiency in how their food products are packed.

    “Thailand is a priority market and an important regional hub for many of our customers in South East Asia and beyond, so we’re delighted to be launching these new, world-class multi-application facilities in Bangpoo,” said John Savage, President & CEO, Kerry APMEA.

    “Consumer food and beverage tastes are changing rapidly due to the region’s growing urban middle class and this is creating huge opportunities for the F&B sector. We’re excited to combine our 15 years of heritage in Thailand with the very latest technologies and innovation to help our customers stay ahead of the curve and grow their market share now and into the future,” he added.

    Home to application labs, interactive customer suites and industry-leading research and sensory facilities, the centre also includes customer engagement kitchens and beverage bars where Kerry’s in-house chefs, mixologists and baristas will develop new menu concepts alongside customers.

    Experienced food scientists and technologists will also work alongside dedicated teams of sensory scientists to develop products that surpass consumers’ expectation when launched. As one of the largest food manufacturers in the world, Kerry is also committed to achieving the highest standards of sustainable best practice. As part of this commitment, the centre employs automated pouch filling technology to reduce energy consumption and improve operational efficiency.

  • Kerry Logistics appoints new head of UK food and beverage division

    Kerry Logistics appoints new head of UK food and beverage division

    Kerry Logistics has appointed Claire Trench as Head of Food and Beverage (F&B), based at its Glasgow, Scotland office in the United Kingdom.

    Trench has over 17 years’ experience in forwarding, most recently in senior management positions working with leading brands in the beers, wines, and spirits industry. In her new role, she will support brands looking to export to the rapidly developing F&B market in Greater China, where Kerry Logistics offers complete cold chain logistics solutions, F&B trading, and production services.

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