JARDINE Matheson Holdings on Thursday (Mar 2) posted an underlying net profit of US$1.6 billion for the financial year 2022, up 5 per cent from underlying earnings of US$1.5 billion in 2021. 

The company attributed this to strong showings by Astra and its other South-east Asian businesses held by Jardine Cycle and Carriage. 

Astra reported a 51 per cent increase in underlying earnings, excluding the unrealised net fair value loss on investments in GoTo and Hermina, with improvements across most of its divisions, supported by Indonesia’s economic recovery and higher commodity prices.

Meanwhile, Jardine Cycle and Carriage posted a 39 per cent increase in underlying profit due to strong performances by Thaco and its direct motor interests. 

Jardine Matheson’s net profit, however, was down 81 per cent to US$354 million from US$1.9 billion. The group attributed this primarily to its net non-trading items – which had a negative position at the end of 2022 – versus a positive position in 2021. 

For the year under review, the bulk of Jardine Matheson’s non-trading losses were from its share of fair value losses amounting to US$604 million arising from the revaluation of the group’s investment properties portfolio and non-current investments of US$309 million, together with an impairment of investment of its associates of US$320 million.

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The board of directors has recommended a final dividend of US$1.60 per share, up from a final dividend of US$1.56 per share in 2021. The dividend will be available in cash with a scrip alternative.

The dividend is subject to shareholder approval at the annual general meeting on May 4, and will be paid out to shareholders on May 10. 

Looking ahead, Jardine Matheson said it is likely to continue to face challenges in the coming year from global economic headwinds. Yet, the company believes it is well-positioned to take advantage of opportunities, as its key markets in South-east Asia and China return to growth following the pandemic. 

Shares of Jardine Matheson fell 0.3 per cent or US$0.17 to US$49.88 on Thursday.