Given that many investors are on edge over the wild ride the stock market has taken this week, stemming from the volatility in the Chinese economy, Kerry Logistics is moving along relatively unscathed. For the first half of 2015, core operating profit for the forwarder increased by 16 percent, year-over-year, to US$119 million, compared to $102 million in 2014. Core net profit increased by 11 percent, year-over-year, to $70 million compared to the first half of 2014 at $63 million.
“The global economy continued to be plagued with volatilities in the first half of 2015,” said William Ma, group managing director. “In face of these challenges, Kerry Logistics focused on honing its core competence in delivering highly customized solutions tailored to industries with growth potential.”
In the second quarter of 2015, Kerry finished Phase One of the Kerry Bangna Logistics Centre, in Thailand, which will become a new sorting center for Kerry Express and a fulfillment center for e-commerce goods. In July, the company broke ground on a new 160,000-square-foot bonded warehouse within a free-trade and special economic zone located in Khan Dangkor, Phnom Penh, Cambodia. And in March, the group expanded business by investing in one of Indonesia’s largest logistics companies, PT Puninar Saranaraya.
Securing its global presence, Kerry acquired a controlling stake in Dubai-headquartered Able Logistics Group FZCO, an international freight forwarder, to offer connections through a transit hub linking Asia to the Middle East, Europe and Africa. In Canada, Kerry Logistics acquired a majority stake in Total Logistic Partner Ocean Consolidators, Inc. and Total Logistics Partner Air Express, Inc., which both focus on Asia-Canada trade. As if they weren’t busy enough, Kerry also signed a memorandum of understanding with a major non-vessel-owning common carrier in the U.S.
Kerry Logistics has nine warehouses totaling more than 5.1 million square feet in Hong Kong.