Astra profit contributions propel Jardine Cycle & Carriage to H1 earnings growth

JARDINE Cycle & Carriage (Jardine C&C), known in Singapore as a Mercedes-Benz dealer, on Thursday reported that first-half underlying profits more than doubled on the back of looser Covid-19 restrictions in its regional markets.

Its chairman Ben Keswick warned, however: "Although business conditions have since improved, the group remains cautious about performance in the second half of 2021, given the worsening Covid-19 situation in a number of countries across the region."

Underlying earnings, which excludes non-trading items, jumped to US$346.5 million for the six months to June 30, from US$137.7 million before. The year-on-year growth, while broad-based, was led by contributions from Indonesian conglomerate Astra.

Revenue rose 25.7 per cent to US$8.29 billion, on higher direct motor interest sales, and automotive, heavy equipment and mining operations at Astra.

But net profit fell by 24.8 per cent to US$226.3 million, dragged down by non-trading items such as unrealised losses from the revaluation of the group's equity investments.

Earnings per share came in at US$0.57, compared with US$0.76 previously, while net asset value was US$17.50 a share, against US$17.65 as at end-2021.

Jardine C&C has declared an interim dividend of US$0.18 a share, twice the payout in the year before. The books close on Aug 31 and the dividend will be paid on Sept 30.

Separately, the board unveiled a reshuffle on Thursday, with Lim Hwee Hua expected to take over as lead independent director on Jan 1, 2022, succeeding Vimala Menon. Mrs Lim is set to join the remuneration committee on the same date.

Independent director Steven Phan will replace Ms Menon as chairman of the audit committee on Oct 1; Ms Menon will become a committee member.

Former OCBC chief executive Samuel Tsien joins the Jardine C&C board as an independent director on Oct 1, and has been named to the audit committee too.

Jardine C&C shares shed S$0.06, or 0.3 per cent, to S$20.30, before the latest news.