Kerry Logistics said the ongoing coronavirus pandemic would create business and financial turmoil worldwide and switch demand to a more domestic-based supply chain — however, it is in a 'relatively secure condition' given its extensive network particularly in Asia.

In announcing its 2019 results, the Hong Kong-based logistics company said last year "was challenging and turbulent" but it was able to grow its in revenue, core operating profit and core net profit again in 2019 supported by its diversified business portfolio, extensive geographical coverage and broad customer mix.

For 2020, Kerry also expects to be able to weather the extreme impact of the coronavirus outbreak as supply chains turn more domestic.

“The COVID-19 pandemic outbreak is creating a global business and financial turmoil. As of today, one-third of the world’s population is under varying degrees of lockdown. The world has been switching to a more domestic-based supply chain for daily essentials," said William MA, group managing director of Kerry Logistics.

"Riding on Kerry Logistics’ extensive exposure in various markets, the Group is in a relatively secure position to accommodate the strong demand for domestic logistics services particularly in Hong Kong, Taiwan, Mainland China, Thailand and some Asian countries," he added.

Slow, painful recovery for the industry

He noted, however, that when the outbreak is contained, the global supply chain would grapple to bounce back.

"... when the pandemic comes under control, the global supply chain will be in chaos and the recovery is expected to be slow and painful," MA said.

"We are reserving our strengths and getting prepared to play a more vital role in supporting our customers to move well ahead of the aftermath," he added.

Meanwhile, in its disclosure, Kerry Logistics said the Group completed the acquisition of the remaining 49% in Apex, the third largest NVOCC in terms of volume from Asia to the US in 2019 last March 31 at a cost approximately US$176 million.

Kerry said the acquisition represents a continuation of the Group’s strategy to grow its business organically in the US.

In August 2019, the Group also acquired a majority interest in Turkey’s ASAV Logistics Services Inc. to further the expansion of its global network.