The freight forwarding division of the Kerry Logistics Network boosted the growth of the group, which in 2020 made a net profit of 33% to HK $ 3.32 billion ($ 234 million).
Revenue rose 30% to HK $ 53.3 billion, while its cash position rose about 45% to HK $ 8.47 billion.
Kerry’s International Freight Forwarding Organization (IFF) was a “powerful force,” the company said, accounting for 28% of total profits and its own profit rising 64% year-on-year.
“Growth has been largely driven by strong global demand for pandemic-related goods, as well as production and exports from mainland China,” the company said.
“It has created favorable conditions for the group to take advantage of opportunities from an unprecedented volatile global freight market, in terms of rates, capacity and equipment availability.”
IFF’s revenues in mainland China almost doubled to HK $ 15.3 billion, while Hong Kong, Taiwan and the United States also recorded decent growth. But while revenue in Hong Kong grew by 55%, profits in the region rose by 329%.
Now a year since the full acquisition of Apex and Kerry, Apex has seen a 17% increase in volume in 2020, recognizing that NVOCC is No. 1 from Thailand, Vietnam, Indonesia and Malaysia to the US, and second from Asia to the US last year. .
And Kerry said he expects demand to remain strong in international freight forwarding.
“It is expected that the overall market situation in H1 21 will remain similar to H2 20, but with lower volatility. The global supply chain is likely to see normalcy only after 2021, ”it is predicted.
Kerry’s Integrated Logistics (IL) division recorded 8% growth, driven by “strong performance in Hong Kong and Taiwan”.
The Hong Kong warehouse department recorded a drop in revenue after the two warehouses were disposed of, but otherwise the department grew by 10%, “which benefited from an increase in demand for daily necessities, electronic goods and pharmaceutical logistics delivered from home.”
Mainland China recorded a return in IL profits in the second half, after falling 37% in the first six months as production continued and e-commerce grew rapidly.
In Asia as a whole, IL’s business has been affected by blockades and the shift from work to mass consumption to key supply sectors. Meanwhile, Kerry has expanded its express business to the Philippines with a joint venture in which the group has a 51% stake.
Kerry is optimistic about his future, after SF Holdings decided last month to buy a majority stake.
“Scale and technological advancement are crucial for any company in this industry to maintain its competitiveness vis-à-vis its counterparts and drive change in the global logistics scene,” Kerry noted. “To this end, the proposed strategic cooperation with SF Holding will strengthen the KLN Group, expanding its reach and improving its research and development capabilities.
“Together with a diverse geographical presence and a wide range of service options, the KLN Group will enable it to strengthen its resilience, improve flexibility and provide a more diverse product offering to its customers during these unprecedented times.”
William Ma, CEO of the group, added: “The Covid-19 pandemic has brought unprecedented challenges to everything from global public health to human existence. The momentum of stopping and starting the global economy has caused serious disruptions in the global supply chain. With the severely reduced mobility of people, the role of logistics is becoming increasingly important. Every link in the supply chain from procurement and production to distribution of finished products must continue to be maintained.
„2020. Thanks to the collective efforts of our colleagues and business partners, KLN Group achieved record growth in both revenue and core net profit, clearly demonstrating the resilience and ability of the group to evolve through a pandemic. ”
You can see the complete results here.