Kerry Logistics Network Limited (‘Kerry Logistics’ or together with its subsidiaries, the ‘Group’; Stock Code 0636.HK) has announced the Group’s interim results for the six months ended 30 June 2018.
William Ma, Group Managing Director of Kerry Logistics, said, “Although the world economy experienced growth in 2018 1H, global demand has been flat.
Nevertheless, the China-US trade dispute has caused manufacturing capacities to shift from Mainland China to other Asian countries, bringing about an increase in shipping volume and production activities in Asia. Southeast Asia, in particular, has enjoyed the fastest growth in the region. Leveraging the strongest network in Asia and our diversified business portfolio, the Group achieved double digit growth in turnover, core operating profit, and core net profit in 2018 1H.”
Having benefitted from the booming intra-Asia trade and ecommerce business, the IL division achieved a 25% rise in segment profit in 2018 1H. The IL business in Hong Kong, Taiwan, and Asia as a whole is expected to remain a major earnings driver for the rest of the year.
In Hong Kong, driven by stable growth in revenue from existing customers and new customer gains, the segment profit of the logistics business grew by 71% in 2018 1H. The Group’s business in Taiwan saw a profit recovery in 2018 1H, and the IL segment profit is expected to pick up in 2018 2H.
Sustained by strong intra-Asia trade and increasing shipping volumes in the region resulting from the China-US trade tensions, the IL segment profit of Asia posted a 54% growth in 2018 1H.