Kerry Logistics Network Posts 95% Growth in Profit Attributable to the Shareholders

Growth in Revenue and CoreNet Profit Outperforms the Market

HONG KONG,March 28, 2025/PRNewswire/ -- Kerry Logistics Network Limited ('KLN', the'Company'or together with its subsidiaries, the'Group'; Stock Code 0636.HK) today announced the Group's annual results for 2024.

Group's Financial Highlights

• Revenue* grew by 23% to HK$58,274 million (2023:HK$47,408 million)
• Core operating profit* increased by 23% to HK$2,725 million (2023:HK$2,207 million)
• Core net profit* increased by 12% to HK$1,357 million (2023:HK$1,214 million)
• Profit attributable to the Shareholders was HK$1,542 million, which represents a growth of 95% (2023:HK$791 million)
• Integrated Logistics ('IL') business recorded a segment profit* of HK$1,251 million (2023:HK$1,289 million), which represents a decrease of 3%
• International Freight Forwarding ('IFF') business recorded a segment profit* ofHK$1,950 million(2023:HK$1,400 million), which represents a growth of 39%
• Proposed final dividend of15 HK cents per Share to be payable on or around Tuesday,10 June 2025.

* For continuing operations only

Vic Cheung,Executive Director andChief Executive Officer of KLN, said,"In 2024, the global economy underwent a slow recovery. Yet, challenges abounded in the macroeconomic environment. KLN responded tothese evolving marketswith agility, leveraging our network resources and offering flexible and cost-effective solutions to its customers. The Group's resilience was fully demonstrated by our 2024 results. KLN recorded double-digit growthacross both revenue and corenet profit for the year, outperforming our international peers. We are also excited to announce our global rebranding campaign from'Kerry Logistics Network'to'KLN', now an established household name that our customers have grown accustomed toand trust, which will usher in a new era of the Group's development."

Integrated Logistics

The Group'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 Kongand the Mainland ofChina. 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 optimisation measures to reduce operational expenses, including streamlining processes and human resources utilisation.

The Hong Kong IL business recorded a 12% drop in segment profit as a result of the domestic economic downturn and changes in the consumption patterns of visitors and local citizens. In the Mainland ofChina, the IL business recording an 11% drop in segment profit.

The IL business in the rest ofAsiaregistered a 25% increase benefitting from the growth inIndia,SingaporeandVietnamand driven by the stable performance of Kerry Siam Seaport inThailand. Building on its extensive network and diversified business portfolio inSoutheast Asia, KLN capitalised on the opportunities arising from the international expansion policies of Chinese corporations in 2024.

International Freight Forwarding

The Group's IFF business recorded a 39% growth in 2024, supported by the growth in key markets including the Mainland ofChina, the US,Hong Kongand the rest ofAsia.

The Red Sea situation triggered a spike in ocean freight rates which began inMay 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. KLN 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.

In 2024, KLN's industrial project logistics division strengthened its service capabilities and contributed revenue of overHK$1.7 billionto the Group. The segment is expected to become another growth driver for the Group in the coming years.

The joint venture between the Group and S.F. Holding commenced operations inNovember 2023to provide ground handling services at the international cargo terminal of the Ezhou AirportinChina. In 2024, the joint venture recorded a revenue contribution of more thanHK$200 millionin its first year, significantly exceeding expectations.

Rebranding to'KLN'

The Group is 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. The Group is to phase out the use of the Kerry trademarks and'Kerry' as part of the company name by30 June 2025.

Vic Cheungconcluded,"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. With KLN's unique competitive advantages and the ability to capitalise on new opportunities brought about by the changes in the market, we will further drive the overall growth of our business, and have our future growth potential reflected in the Company's market valuationunder the KLN brand."

-End-

About Kerry Logistics Network Limited (Stock Code 0636.HK)

KLN is anAsia-based, global 3PL with a highly diversified business portfolio and extensive coverage inAsia. It offers a broad range of supply chain solutions from integrated logistics, international freight forwarding (air, ocean, road, rail and multimodal) and e-commerce to industrial project logistics and infrastructure investment.

With a global presence across 59 countries and territories, KLN has established a solid foothold in half of the world's emerging markets. Its diverse infrastructure, extensive coverage in international gateways and local expertise span across the Mainland ofChina,India,Southeast Asia, the CIS,Middle East, LATAM and other locations.

KLN generated arevenue* of close toHK$60 billion in 2024. It is listed on the Hong Kong Stock Exchange and is a constituent of the Hang Seng Corporate Sustainability Benchmark Index.

* For continuing operations only

View original content:https://www.prnewswire.com/apac/news-releases/kerry-logistics-network-posts-95-growth-in-profit-attributable-to-the-shareholders-302414173.html

SOURCE Kerry Logistics Network Limited