They show a 27% growth in turnover and a 19% increase in core operating profit. Performance was driven by intra-Asian trade which increased because of the China-US trade dispute; of note, too, were acquisitions both in Europe and South Africa. Turnover increased by 27% to reach HK$17,461m compared to 2017 figures of HK$13,705m whilst operating profits increased by 19% to HK$1,216m.
William Ma, Group Managing Director of Kerry Logistics, commented: “Although the world economy experienced growth in the first half of 2018, global demand has been flat. Nevertheless, the China-US trade dispute has caused manufacturing capacities to shift from mainland China to other Asian countries, bringing about an increase in shipping volume and production activities in Asia. Southeast Asia, in particular, has enjoyed the fastest growth in the region."
George Yeo, Chairman of Kerry Logistics, echoed his words: “The ongoing trade spat between mainland China and the US is reshaping trade routes and global supply chains. While the trade volume between the two economies is expected to reduce in the near future, certain markets in Asia are likely to benefit conversely from the increased intra-Asia trade as customers look for alternative supply sources beyond mainland China and the US. We expect our Asian business to continue to grow and contribute to a major part of the Group’s profit in three to five years’ time."