Kerry Logistics Group is to sell its share in Asia Airfreight Terminal as part of a strategy to streamline business and increase performance.

It says the cash and working capital will allow the group to restructure its business position and focus on pursuing development opportunities in core businesses or potential future acquisitions.

The news came as it announced turnover increased 14 per cent in 2016 to 24 billion Hong Kong dollars ($3 billion) while net profit was up four per cent to HK$1 billion.

Group managing director, William Ma says: “Kerry Logistics has managed to weather market headwinds in 2016 and minimised the adverse macro-economic impact on its business with quick response to market changes. Despite the tough operating environment, the Group managed to achieve a 14% growth in turnover, while core net profit grew by 4% in 2016.”

“The sustainable increase in earnings was attributable to strong growth of our IFF [international freight forwarding] business, solid growth in South and Southeast Asia, as well as synergies generated from recent acquisitions.”

Kerry Logistics says Greater China remains a major contributor to its integrated logistics (IL) business, with Hong Kong reporting some growth and logistics operations in Hong Kong and China recording healthy profit increases from new business and customer wins, though Taiwan was flat.

It says IL performed well elsewhere in Asia helped by intra-ASEAN e-commerce and cross-border logistics activities.

IFF outpaced IL with acquisitions including a majority stake in APEX, and robust growth in South and Southeast Asia, particularly India, Singapore and the Philippines.

An acquisition is also underway to establish Kerry’s presence in the Commonwealth of Independent States (CIS) countries, having entered into definitive agreements to acquire a controlling stake of a freight forwarding group.

The Dubai headquartered group is engaged in rail, road and airfreight in nine CIS countries, and is scheduled for completion by May 2017.