Kerry Logistics Network Limited
Kerry Logistics Records 10% Growth in 1H Core Operating Profit to HK$1,019 Million
HONG KONG, 31 August 2017 – Kerry Logistics Network Limited (‘Kerry Logistics’ or together with its subsidiaries, the ‘Group’; Stock Code 636) today announced the Group’s interim results for the six months ended 30 June 2017. – Turnover surged by 31% to HK$13,705 million (2016 1H: HK$10,461 million) – Core operating profit increased by 10% to HK$1,019 million (2016 1H: HK$928 million) – Core net profit went up by 5% to HK$576 million (2016 1H: HK$548 million) – Profit attributable to the Shareholders rose by 11% to HK$788 million (2016 1H: HK$709 million) – Integrated Logistics (‘IL’) business recorded a segment profit of HK$884 million (2016 1H: HK$799 million), which represents a lift of 11% – International Freight Forwarding (‘IFF’) business achieved a 7% increase in segment profit to HK$222 million (2016 1H: HK$208 million) – Interim dividend of 8 HK cents per share recommended William Ma, Group Managing Director of Kerry Logistics, said, “2017 1H has been another challenging period. Global demand stalled in Q1 and our cargo volume was at a low level in January and February. Nevertheless, the temporary slowdown in Q1 reversed as the world economy gradually stabilised with cyclical recovery starting from Q2. Supported by strong logistics volume growth in Asia and sound performance in the Americas, the Group’s performance and earnings have shown considerable improvements since Q2. Against this backdrop, for 2017 1H, Kerry Logistics recorded a 31% growth in turnover and a 10% growth in core operating profit. However, core net profit only reported a 5% growth due to the unsatisfactory performance of our investments in associates, which reported a 52% year-on-year decrease in contribution.” Strongest Network in Asia The development of an integral overland transportation network with land-bridge connectivity demonstrates Kerry Logistics’ commitment to providing new options and cost-efficient solutions to customers. IL Maintains Stable Growth The overall IL business in Asia remained strong in 2017 1H, driven by the enhancement of the Group’s service capabilities in ASEAN. IFF Sustains Significant Growth Asset Optimisation George Yeo, Chairman of Kerry Logistics, concluded, “The Group continues to see China’s Belt and Road initiative as a major opportunity to expand our network and to drive growth in long-term profitability across Asia. The new acquisitions made in 2017 1H added important components to our strategic plan to become the pre-eminent logistics service provider for the new overland and maritime Silk Roads. We are increasing our capabilities in e-commerce and cross-border logistics in Asia. In 2017 Q2, we formed a joint venture with a local express operator in Indonesia to tap into the booming market there. Singapore will be our next target for expansion. With Q2 performance much better than Q1, we expect the momentum of recovery for the rest of 2017 to be positive.” -End- About Kerry Logistics Network Limited (Stock Code 636.HK) Document: http://n.eqs.com/c/fncls.ssp?u=GFSSMHNLIY Document title: IR2017-PressRelease-E_Final_R (31Aug2017)
31/08/2017 Dissemination of a Financial Press Release, transmitted by EQS Group. |