A remarkable increase in turnover at Kerry Logistics, up 31 percent to US$1.75 billion in the first half of 2017, presents further evidence that global trade has overwhelmed protectionist sentiments that dominated headlines last year. “The world economy gradually stabilized, with cyclical recovery starting from Q2,” said William Ma, group managing director of Kerry Logistics.
Hong Kong-based Kerry Logistics has thrown in its lot with cross-border trade, and is currently in acquisition mode in Europe (link), where it hopes to capitalize on increased E.U.-China trade. In Asia, Kerry has made Singapore its next target for expansion. “We are increasing our capabilities in e-commerce and cross-border logistics in Asia,” said Kerry’s chairman George Yeo.
Core operating profits increased by 10 percent to $141 million in the first half, however core net profit only rose by 5 percent due to what Ma called, “the unsatisfactory performance of our investments in associates.” Ma added that those investments reported a 52 percent year-on-year decrease in contribution.
Kerry’s Integrated Logistics business recorded a segment profit of $113 million, up 11 percent, y-o-y. The company’s International Freight Forwarding segment business saw a 7 percent, y-o-y, increase in segment profit to $28.3 million.
While Kerry’s expansion continued apace across its markets, the company highlighted developments in the Association of Southeast Asian Nations (ASEAN) region, where it is expanding its operations in countries such as Thailand, where its phase four expansion of the Kerry Siam Seaport is expected to be complete in 2018.
“With Q2 performance much better than Q1, we expect the momentum of recovery for the rest of 2017 to be positive,” said chairman Yeo.
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