(Reuters) - Expansion services provider DKSH reported an annual core operating profit in line with market expectations on Wednesday, with its healthcare unit making up the lion's share of its business
Expansion services firm DKSH will benefit from tariffs on China, CEO
By Isabel Demetz and Paolo Laudani
(Reuters) - Swiss expansion services provider DKSH, mostly active in South East Asia, expects to benefit from the new tariffs on China, its CEO said during a press call on Wednesday.
"We think that the whole tariff discussion with China is going to have the effect that more trading is happening with South East Asia," CEO Stefan Butz said after the publication of DKSH's annual results.
As a result, the Zurich-based company expects to see more investments into the region in the coming years.
DKSH, which helps companies expand into other markets, makes roughly 70% of its sales in South East Asia, a region of growing importance as some companies seek to shift their production away from China to avoid a hit from geopolitical spats.
Earlier this month, U.S. President Donald Trump imposed new 10% tariffs on Chinese imports, which led to China filing a complaint at the World Trade Organization.
Earlier on Wednesday, DKSH reported annual core earnings before interest and taxes of 343.1 million Swiss francs ($365.76 million), in line with market expectation, with its healthcare unit making up the lion's share of its business.
The group also said it expected 2025 core earnings to be higher than last year, without giving a concrete figure.
($1 = 0.9129 Swiss francs)
(Reporting by Isabel Demetz and Paolo Laudani in Gdansk; Editing by Milla Nissi)
