Kerry Logistics Network is rebranding as ‘KLN’, marking a valuable opportunity for the company to establish a more unified and distinct corporate identity. This rebranding aims to reinforce its unique strategic positioning and value proposition to better serve the interests of its shareholders.
The Group said it would phase out the use of the Kerry trademarks and "Kerry" as part of the company name by June 30, 2025.
The rebranding announcement came as the Hong Kong-headquartered global 3PL also announced a 95% growth in profit attributable to shareholders for 2024.
It said that profit attributable to the shareholders reached HK$1,542 million, which represents a 95% growth (2023: HK$791 million). Its Integrated Logistics (IL) business recorded a profit of HK$1,251 million (2023: HK$1,289 million), which represents a decrease of 3%, while its international freight forwarding (IFF) business recorded a segment profit of HK$1,950 million (2023: HK$1,400 million), which represents a growth of 39%.
"In 2024, the global economy underwent a slow recovery. Yet, challenges abounded in the macroeconomic environment. KLN responded to these evolving markets with agility, leveraging our network resources and offering flexible and cost-effective solutions to its customers," said Vic Cheung, executive director and chief executive officer of KLN.
“Since the beginning of this year, we have seen tariffs, every day there are new and different challenges, I think the latest might be next Wednesday, we will see some new measures, regarding tariffs, currently, we have seen positive results in January and February, our cargo volume has actually increased, but in March, it is clear that there is a lot of uncertainty, how we view the long-term future over the next nine months, really depends on the overall environment and policies,” said Cheung.
"The Group's resilience was fully demonstrated by our 2024 results. KLN recorded double-digit growth across both revenue and core net profit for the year, outperforming our international peers," he added.
KLN's IL business reported a 3% drop in segment profit due to the impact of the changes in the external environment and in the domestic consumption patterns on key markets, Hong Kong and the Mainland of China.
Undeterred by a difficult operating environment in the two markets, KLN successfully narrowed the decline in segment profit by capitalising on the growth in other Asian markets and implementing a series of cost optimization measures to reduce operational expenses, including streamlining processes and utilizing human resources.
The Hong Kong IL business recorded a 12% drop in segment profit due to the domestic economic downturn and changes in the consumption patterns of visitors and local citizens. In Mainland China, the IL business recorded an 11% drop in segment profit.
The IL business in the rest of Asia registered a 25% increase, benefitting from the growth in India, Singapore, and Vietnam and driven by the stable performance of Kerry Siam Seaport in Thailand.
The Group’s IFF business recorded a 39% growth in 2024, supported by growth in key markets, including Mainland China, the US, Hong Kong, and the rest of Asia.
KLN said the Red Sea situation triggered a spike in ocean freight rates, which began in May 2024, while the ocean freight market experienced a supply shortage in 2024 Q3, which KLN fully capitalised on by providing customers with the rare offering of block space.
“Regarding shipping costs, over the past few years, starting from Covid, everyone has been very concerned about these costs. When shipping costs are high, people worry about how we can sustain ourselves. Now, in March, we see that shipping costs have decreased, and people are worried again, wondering where our profits will come from with lower shipping costs,” said Cheung, he explained that KLN cannot control the fluctuations in shipping costs due to external factors beyond their control.
KLN said it is focused on serving key customers and successfully improved its segment profit, while maintaining its top position globally as the leading NVOCC in the Asia-US trade lane.
Meanwhile, the joint venture between the Group and S.F. Holding commenced operations in November 2023 to provide ground handling services at the international cargo terminal of the Ezhou Airport in China. In 2024, the joint venture recorded a revenue contribution of more than HK$200 million in its first year, significantly exceeding expectations.
Rebranding to 'KLN'
The Group said it is also undertaking the rebranding of 'Kerry Logistics Network' to ‘KLN’.
"The rebranding exercise presents a valuable opportunity for the company to further establish a more unified and differentiated corporate identity and reinforce its own unique strategic positioning and value proposition to better serve the interests of its shareholders," it said.
Looking ahead, Cheung said, "We expect supply chain anomalies to persist in 2025. The volatile policy environment will induce more corporations to shift their investment focus towards the Southeast Asian or South Asian regions."
"The development potential within these regions is expected to become a growth area for KLN's IL business. We will also actively leverage our existing diversified market presence, including our extensive overseas warehouse network and ocean and air freight services, to capitalise on new opportunities springing from the supply chain reshuffle," he added.
