Third-party logistics provider Kerry Logistics reported a robust profit growth in 2021.
The company’s core net profit increased by 102% to HK$3.7 billion ($628 million), according to its annual results for 2021.
Over that year, the company’s revenue increased by 53% to HK$81.8 billion ($1.4 billion) and its core operating profit increased by 88% to HK$6.2 billion ($1 billion).
Kerry Logistics’ international freight forwarding business recorded a profit of HK$4.9 billion ($827 million), an increase of 389% on 2020 (which was reported at HK$993 million [$167 million]).
Kerry’s Integrated Logistics (IL) business recorded a segment profit of HK$1,868 million (2020: HK$2,642 million), which represents a decrease of 29%, partly due to the disposal of the group’s Hong Kong warehouse and the Taiwan businesses during the year.
Kerry Logistics managing director William Ma said the company’s 2021 revenue of HK$81.8 billion was a record for the company.
“In 2021, supply and demand mismatch, logistics bottlenecks, congested ports, labour shortage and pandemic related lockdowns and measures continued to cause endless disruptions in the global supply chain,” Mr Ma said.
“Thanks to the unwavering support from our colleagues and partners, we managed to deliver efficient and consistent services to our customers in the face of complex and relentless challenges.”
Mr Ma said the complex dynamic system of the global supply chain will remain sensitive to an array of different pandemic responses and measures as well as geopolitics.
“International freight will face another year of price, volume and capacity volatility. Inflationary pressures and material shortages along the supply side will continue to disrupt global trade for a prolonged period,” he said.
“Although onshoring and reshoring have been discussed widely, it is highly likely that Asia, the manufacturing base of the world, will continue to hold its ground in the next five years. KLN Group and S.F. Holding’s strategic co-operation has opened a new page for both sides. Unique yet competitive service offerings have been co-developed through the ongoing business and operation integrations.”
