Kerry Logistics Network Limited generated HK$38.1 billion (US$4.9 billion) in revenue during 2018, a year-on-year increase of 24%, according to annual results released by the group.

Core operating profit rose by 11% to HK$2.4 billion (US$301 million), while core net profit increased by 12% to HK$1.3 billion (US$169 million). Profit attributable to shareholders grew by 15% to HK$2.4 billion (US$311 million).

“Global economic growth moderated in 2018,” said William Ma, group managing director of Kerry Logistics. “The US-instigated trade tension, in particular with mainland China, reverberated far and wide, casting uncertainties over the global trade landscape. In contrast, the economic growth in emerging Asia, specifically in the Southeast Asian countries, continued its strong momentum. With an unparalleled network in Asia, Kerry Logistics is well-positioned to capitalize on the robust growth in the region.”

According to Kerry, increasing demand in intra-Asia trade and e-commerce resulted in a 14% rise in segment profit for the group’s integrated logistics business. The division is set to remain the main earnings driver in 2019.

The group’s Kerry Express Thailand and Kerry Siam Seaport businesses showed particularly strong performances.

Kerry’s international freight forwarding division registered steady volume growth in the second half of 2018, as customers frontloaded their shipments in advance of trade tariffs being enforced.

The division recorded a 7% profit growth in 2018.

“Despite uncertainties, Kerry Logistics did well in 2018, achieving double-digit growth,” said George Yeo, chairman of Kerry Logistics. “Looking ahead, we see three major trends affecting global logistics. First, China’s market will continue to grow and become the biggest in the world. Kerry Logistics will broaden and deepen its reach in China selectively. Second, strategic rivalry between China and the US will continue for years to come and disrupt existing global supply chains. In order to serve our customers well, Kerry Logistics must be able to offer a range of network solutions to them. Third, technology is steadily disrupting all aspects of the logistics industry. Kerry Logistics will give emphasis to the use of information technology, blockchain and AI wherever practical in warehouse, fleet, freight, contract and e-commerce management. We will stay nimble and agile even as our network grows in response to changing threats and opportunities in Asia and the world.”