3PL Kerry Logistics Network (KLN), based in Hong Kong, reported significant decreases in revenue and profits for the year 2023. The company witnessed a 42% drop in full-year revenues to HK$47.4 billion (US$6 billion) and a 78% decrease in net profit to HK$791 million. This decline was partly due to the sale of its Asia Pacific and European e-commerce and express businesses to SF Holding in the third quarter, as well as the decision to de-consolidate Kerry Express Thailand in December.
Despite these challenges, KLN’s remaining business lines, Integrated Logistics and International Freight Forwarding, experienced impacts from the market returning to normal after the pandemic boom. Integrated Logistics saw a segment profit of HK$1.3 billion, down 7% from the previous year, while International Freight Forwarding witnessed a 70% profit drop to HK$1.4 billion due to decreasing air and ocean freight rates.
KLN’s Managing Director, Vic Cheung, highlighted the company’s ability to adapt to changing consumer demands and global supply chain shifts, providing cost-effective solutions for customers. Cheung noted that while Integrated Logistics faced challenges in Hong Kong, cost-cutting initiatives in mainland China led to a 17% increase in profits.
Looking towards the future, KLN aims to strengthen collaborations with SF Holding, identify new growth opportunities, and deliver greater value to shareholders. Despite challenges in the forwarding industry, Kerry Logistics Network reported positive results in its out-of-gauge and project cargo division, with successful completion of various industrial projects in China, Central Asia, and Europe. This segment is expected to be a key driver of growth for the International Freight Forwarding division.
