Kerry Logistics painted a rather bleak outlook for global logistics this year, noting ongoing market uncertainties following its report on revenue growth and core net profit for 2022.
Kerry saw its revenue increase by 10% to HK$86,649 million (US$11,038 million) last year, although its core operating profit dropped by 12% to HK$4,790 million from HK$5,441 million in 2021.
Core net profit, however, increased by 11% to HK$3,572 million from HK$3,220 million in the year prior.
Speaking to the press during the release of its 2022 performance, William Ma, group managing director of Kerry Logistics Network, cited the challenges of 2022 to the logistics sector.
"2022 was a turbulent year. For the logistics industry, it was a pendulum swinging from one extreme to the other with severe supply-demand fluctuations. Inflation, rising interest rates, overstocking alongside consumers’ shift in spending patterns and overcapacity all led to a sharp drop in the global product demand and purchase orders in 2022 2H," Ma said.
"Despite a tough 2022, KLN Group recorded a revenue of HK$86.6 billion and a core net profit of HK$3.6 billion in its continuing operations riding on its unparalleled network in Asia, diversified global service offerings and cross-selling synergies with SF Holding in various arenas," he added.
For 2022, Kerry saw its Integrated Logistics business recording segment profit of HK$1,375 million, up 28% from HK$1,073 million in 2021; while its E-commerce and Express business recorded a segment loss of HK$826 million from HK$41 million.
Kerry noted that its International Freight Forwarding business recorded a segment profit of HK$4,703 million, 3% lower than HK$4,825 million in 2021.
One of the most challenging years for global logistics
Looking ahead to 2023, Ma warned of further market turbulence that would impact global logistics operations calling this year "one of the most challenging years" for the industry.
"The global economy is poised to experience a deeper slowdown in 2023 with greater market volatility, uncertainties and risks for the year," he told media representatives.
"While the road back to full recovery will be long and bumpy, Asia exports will rebound gradually in 2023 Q2 at the earliest, in an optimistic scenario. 2023 will be one of the most challenging years for the global logistics market in more than a decade," he added.
"Considering that KLN Group achieved record results in 2022 1H, the Group expects a considerable disparity for 2023 in comparison."
Ma noted that looking ahead, the Group will continue to take an active part in the global supply chain reshuffling as the logistics landscape evolves while adapting to shifting market conditions to serve its customers' ever-changing needs.
