Kerry Logistics has managed to weather market headwinds in 2016 and minimised the adverse macro-economic impact on its business with quick response to market changes. Despite the tough operating environment, the Group managed to achieve a 14 per cent growth in turnover, while core net profit grew by 4 per cent in 2016. The sustainable increase in earnings was attributable to strong growth of International Freight Forwarding business, solid growth in South and Southeast Asia, as well as synergies generated from recent acquisitions.
E-commerce will continue to be a key growth driver for the Group. Demand momentum driven by cross-border e-commerce is particularly strong between Greater China and ASEAN. Leveraging its strong regional network and capabilities, Kerry Logistics is well positioned to capture the growth opportunities arising from the increasing e-commerce trade and volumes.
During the year, the Group took further steps to enhance its service capabilities and coverage along the Belt and Road. Internally, business restructuring in Mainland China and the Greater Mekong Region is ongoing. New business divisions were set up to focus on project, rail and multimodal logistics development across Asia and Europe.
Externally, an acquisition is underway to establish the Group’s presence in the Commonwealth of Independent States (‘CIS’) countries. The Group entered into definitive agreements in 2016 to acquire a controlling stake of a freight forwarding group based in the region. The target group, with its headquarters in Dubai, is engaged in rail, road and air freight businesses in nine CIS countries. The acquisition scheduled for completion by May 2017 will open the door to potential markets with growth prospects.
George YEO, Chairman of Kerry Logistics, said, “Aligning ourselves with China’s game-changing One Belt, One Road Initiative, we are systematically expanding our network by sea, air, road and rail. The acquisition of the freight forwarding group in CIS countries will significantly expand our coverage in Central Asia. The opening of new road and rail freight routes from China to Europe and Pakistan will enable us to offer different options to our customers. Step by step, we are becoming the premier logistics service provider in Asia. Whatever changes may result from policy changes in the US and other countries, Kerry Logistics stands ready to help our customers adjust to them quickly and optimally.”
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