Key Group Financial Highlights included:
• Revenue decreased by 42 per cent to HK$47,408 million (2022: HK$82,330 million).
• Core operating profit dropped by 61 per cent to HK$2,207 million (2022: HK$5,645 million).
• Core net profit decreased by 69 per cent to HK$1,214 million (2022: HK$3,952 million).
• Profit attributable to the Shareholders was HK$791 million, which represents a drop of 78 per cent (2022: HK$3,579 million).
• Integrated Logistics ('IL') business recorded a segment profit* of HK$1,295 million (2022: HK$1,385 million), which represents a decrease of seven per cent.
• International Freight Forwarding ('IFF') business recorded a segment profit of HK$1,394 million (2022: HK$4,721 million), which represents a drop of 70 per cent.
Vic Cheung, group managing director, Kerry Logistics Network, said: "2023 was undoubtedly a challenging year globally. Nevertheless, the global economy was in a better shape than it was in 2022. For the global logistics industry, while growth stalled, both freight rates and volume saw a slight rebound as the market continued to normalise gradually. Despite a tough market, new opportunities emerged amid changing consumer demands and the reshuffle of global supply chains. KLN Group's overall performance in 2023 was in line with expectations and on par with global peers."
Segment reporting
During the period, KLN Group took out the e-commerce and Express business from segmental reporting following the transfer of companies engaging in express delivery services in the Asia Pacific and Europe to SF Holding in 2023 Q3 and the subsequent announcement in December 2023 to deconsolidate Kerry Express Thailand through dividend distribution.
The purpose of the restructuring was to reinforce KLN Group's strategy of focusing on its core business of integrated logistics and international freight forwarding.
