Kerry Logistics Network Limited
Kerry Logistics Posts 4% Growth in Core Net Profit to HK$1,104 Million Turnover Rises 14% on Strong IFF Business Performance
Kerry Logistics Posts 4% Growth in Core Net Profit to HK$1,104 Million Group’s Financial Highlights – Turnover increased by 14% to HK$24,036 million (2015: HK$21,079 million) – Core operating profit increased by 4% to HK$1,878 million (2015: HK$1,805 million) – Core net profit increased by 4% to HK$1,104 million (2015: HK$1,061 million) – Profit attributable to the Shareholders increased by 4% to HK$1,877 million (2015: HK$1,804 million) – Integrated Logistics (‘IL’) business maintained segment profit at HK$1,653 million (2015: HK$1,636 million) – International Freight Forwarding (‘IFF’) business recorded a 24% increase in segment profit to HK$448 million (2015: HK$361 million) – Final dividend of 12 HK cents per share recommended – Full-year dividend payout ratio increased to 29% (2015: 26%) William MA, Group Managing Director of Kerry Logistics, said, “Kerry Logistics has managed to weather market headwinds in 2016 and minimised the adverse macro-economic impact on its business with quick response to market changes. Despite the tough operating environment, the Group managed to achieve a 14% growth in turnover, while core net profit grew by 4% in 2016. The sustainable increase in earnings was attributable to strong growth of our IFF business, solid growth in South and Southeast Asia, as well as synergies generated from recent acquisitions.” Greater China remained a major contributor to the IL business. The Group’s Hong Kong warehousing business reported slight growth despite the softening of rental growth. The logistics operations business in both Hong Kong and Mainland China recorded healthy segment profit growth from new business and customer wins in various sectors. Taiwan’s growth was flat. The IL business in other parts of ex-Greater China reported healthy performance. Kerry Logistics’ express business which covered Thailand, Vietnam, Malaysia and Cambodia continued to capture growth opportunities arising from increased intra-ASEAN e-commerce volume and cross-border logistics activities. Demand and growth were particularly strong in Thailand. In Vietnam, restructuring of the express business was completed with new e-commerce customers won. Substantial Increase in IFF Division In the US, business integration following the acquisition of a majority stake in APEX in June 2016 progressed as planned. The IFF business in Asia registered robust growth, which was mainly from South and Southeast Asia, in particular in India, Singapore and the Philippines, through expanded coverage, enhanced capabilities and increased volumes. Rebranding and integration of Kerry Indev Logistics Private Limited in India were completed in 2017 Q1. E-commerce Continues to Drive Growth Development along Belt and Road Internally, business restructuring in Mainland China and the Greater Mekong Region is ongoing. New business divisions were set up to focus on project, rail and multimodal logistics development across Asia and Europe. Continual Expansion of Facility Portfolio In Taiwan, the Group plans to build a multifunctional logistics centre of over 400,000 square feet in Guanyin, the coastal district of Taoyuan City, in order to consolidate various sorting hubs in the region. Construction is expected to start in September 2017 with target completion in 2019. In Cambodia, construction of the new 213,000 square feet Kerry Worldbridge Logistics Centre in the Free Trade Zone in Phnom Penh, focusing on import logistics services, was completed in January 2017. Unlock Asset Values to Optimise Growth and Return George YEO, Chairman of Kerry Logistics, said, “Aligning ourselves with China’s game-changing One Belt, One Road Initiative, we are systematically expanding our network by sea, air, road and rail. The acquisition of the freight forwarding group in CIS countries will significantly expand our coverage in Central Asia. The opening of new road and rail freight routes from China to Europe and Pakistan will enable us to offer different options to our customers. Step by step, we are becoming the premier logistics service provider in Asia. Whatever changes may result from policy changes in the US and other countries, Kerry Logistics stands ready to help our customers adjust to them quickly and optimally. “ # # # About Kerry Logistics Network Limited (Stock Code 636.HK) Document: http://n.eqs.com/c/fncls.ssp?u=FSXWKRNHKK Document title: AR2016-Press Release-E (23Mar2017)_Final
23/03/2017 Dissemination of a Financial Press Release, transmitted by EQS Group. |