Leading Asian forwarding and logistics group Kerry Logistics recorded strong growth in 2011 withyear-on-year revenues up 47% to HK$16 billion (€1.5 billion), thanks to positive results from its
logistics and freight forwarding divisions and after buying several Chinese firms.The company’s net profit, attributable to its parent company Kerry Properties’ shareholders,rose by 11% to HK$740 million (€71.5 million) in 2011, excluding the HK$130 million (€12.6 million)fair value adjustment on investment properties.
Kerry Logistics’ Integrated Logistics (IL) services showed a 43% increase in turnover to HK$6.89billion (€665.5 million) with net profit generated from operations amounting to HK$510 million(€49.3 million). During the last year, the logistics division increasingly focused on new demandemerging from China’s shift from an export-led economy to a growth model led by domesticconsumption, boosted by the flow of manufacturing activities into ASEAN countries. Furtherexpansion of the company’s operations in Taiwan gave an additional boost to its logisticssegment.
In China, the express business, Kerry EAS Logistics, offers domestic express services acrossmainland China, offering next-day and deferred deliveries. It operates a network of more than 130offices with more than 4,000 staff and 2,000 vehicles and cooperates with airlines for air expressdeliveries.
Kerry EAS expanded last year with three acquisitions. In February, it bought Shanghai HuichengLogistics (HCL), a specialist in logistics for hazardous goods, FMCG and automotive. In March, itacquired 70% of Shandong Express, a leading regional express operator with 120 franchise branchesin Shandong province. In May, it followed up by taking over the TCI Logistics Group, a major airfreight forwarder in Beijing, Shanghai, Tianjin and Nanjing.
Kerry’s International Freight Forwarding (IFF) operations also delivered strong growth in 2011with the segment’s turnover up 51% to HK$9.14 billion (€883.3 million) and net profit fromoperations soaring 200% to HK$90 million (€8.69 million). “During the year, the segment leveragedincreasing economies of scale and a growing capability in intra Asia and Asia-Europe trade laneswhile it gained solid ground in serving the growing import requirements in the markets where itoperates,” the company explained.
This year, Kerry Logistics further expanded its global presence. Last month, it strengthened itsoperations in Spain through a buy-out of the remaining shares in its former joint-venture KerrySalvat Logistics S.A from its Spanish partner Salvat Logistica, S.A. As a major player on theSpanish market, Kerry Logistics has been providing a broad range of international freight andlogistics services in the country since 2005 including sourcing and buying from Asia.
In January this year, Kerry Logistics announced plans to expand its presence in Central Chinawith a new logistics centre in Zhengzhou, in Henan Province. The construction work will begin inthe second quarter of 2012 with the facility scheduled for completion in the first quarter of2013. With the logistics centre to be built on 47,000 sqm of land acquired by KerryLogistics, the company will be targeting the electronics and technology, automobile, industrial andmaterial science sectors.
