Kerry Logistics maps expansion after profit rise

Kerry Logistics Network is looking to expand in mainland China and Southeast Asia after reporting an 8 per cent rise in core net profit to HK$490 million for the first half. 

Managing director William Ma Wing-kai said the logistics services provider had been active in Thailand and Vietnam and planned to fast-track expansion in Cambodia, Indonesia, Singapore and Malaysia.

“As production shifts from China to the Asean countries, we find businesses in these countries are growing faster than in Hong Kong and other areas,” said Ma, adding the trend was expected to continue.

The mainland and Hong Kong accounted for the bulk of the company’s core profit. While Hong Kong contributed 34 per cent, the mainland accounted for 27 per cent. The core profit from the mainland rose 9 per cent and that from Hong Kong increased 7 per cent.

The fastest growing segment was Europe, at 75 per cent, but it only accounted for 4 per cent of core profit.

“We are halfway through restructuring the European business. It will continue until next year and is expected to be completed in the first quarter,” Ma said.

He also expects more gains from restructuring the European international freight forwarding business.