KLN posts 95% growth in profit attributable to shareholders
Revenue increased 23% to HK$58.3 billion in 2024, and operating profit was up 23% at HK$2.7 billion.
Kerry Logistics Network reported a 95 percent increase in profit attributable to shareholders at HK$1.5 billion for 2024 compared to HK$791 million in 2023.
Revenue increased 23 percent to HK$58.3 billion and operating profit was up 23 percent at HK$2.7 billion, says an official release.
Vic Cheung, Executive Director and Chief Executive Officer, Kerry Logistics says: "In 2024, the global economy underwent a slow recovery. Yet, challenges abounded in the macroeconomic environment. KLN responded to these evolving markets with agility, leveraging our network resources and offering flexible and cost-effective solutions to its customers. The Group’s resilience was fully demonstrated by our 2024 results. KLN recorded double-digit growth across both revenue and core net profit for the year, outperforming our international peers. We are also excited to announce our global rebranding campaign from Kerry Logistics Network to KLN, now an established household name that our customers have grown accustomed to and trust, which will usher in a new era of the Group’s development."
The Group’s integrated logistics business reported a three percent drop in segment profit due to the impact of the changes in the external environment and in the domestic consumption patterns on key markets, Hong Kong and the Mainland of China, the release added. "Undeterred by a difficult operating environment in the two markets, KLN successfully narrowed the decline in segment profit by capitalising on the growth in other Asian markets and implementing a series of cost optimisation measures to reduce operational expenses, including streamlining processes and human resources utilisation."
The Group’s international freight forwarding business recorded a 39 percent growth in 2024, supported by the growth in key markets including the Mainland of China, the U.S., Hong Kong and the rest of Asia, the release added. "The Red Sea situation triggered a spike in ocean freight rates which began in May 2024. The ocean freight market experienced a supply shortage in Q32024, which KLN fully capitalised on by providing customers with the rare offering of block space. KLN focused on serving key customers and successfully improved its segment profit, while maintaining its top position globally as the leading NVOCC in the Asia-US trade lane."
The joint venture between the Group and S.F. Holding commenced operations in November 2023 to provide ground handling services at the international cargo terminal of the Ezhou Airport in China. In 2024, the joint venture recorded a revenue contribution of more than HK$200 million in its first year, significantly exceeding expectations, the release added.
Cheung says: "We expect supply chain anomalies to persist in 2025. The volatile policy environment will induce more corporations to shift their investment focus towards the Southeast Asian or South Asian regions. The development potential within these regions is expected to become a growth area for KLN’s IL business. We will also actively leverage our existing diversified market presence, including our extensive overseas warehouse network and ocean and air freight services, to capitalise on new opportunities springing from the supply chain reshuffle. With KLN’s unique competitive advantages and the ability to capitalise on new opportunities brought about by the changes in the market, we will further drive the overall growth of our business, and have our future growth potential reflected in the company’s market valuation under the KLN brand."
