Kerry Logistics 2022 profit up 8%

Hong Kong Exchange-listed Kerry Logistics reported an eight percent increase in net profit at HK$3.6 billion ($468 million) for 2022 on 10 percent increase in revenue to HK$86.6 billion ($11.3 billion) excluding discontinued operations.

"Integrated Logistics business recorded a segment profit of HK$1.4 billion, an increase of 28 percent. E-commerce and express business recorded a loss of HK$826 million, and international freight forwarding recorded profit of HK$4.7 billion, down three percent," says an official release.

“2022 was a turbulent year," says William Ma, Group Managing Director, Kerry Logistics Network. "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 pattern 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$86.6 billion and a core net profit of HK$3.6 billion 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.”

The global economy is poised to experience a deeper slowdown in 2023 with greater market volatility, uncertainties and risks for the year, Ma added. "While the road back to full recovery will be long and bumpy, Asia exports will rebound gradually in 2023 Q2 at the earliest, in an optimistic scenario. 2023 will be one of the most challenging years for the global logistics market in more than a decade. Considering that KLN Group achieved record results in 2022 1H, the Group expects a considerable disparity for 2023 in comparison. Looking ahead, the Group will continue to take an active part in the global supply chain reshuffling as the logistics landscape evolves, while adapting to shifting market conditions to serve its customers’ ever-changing needs.”