Jardine Cycle & Carriage H2 earnings down 42% to US$252.3 million

JARDINE Cycle and Carriage (Jardine C&C) on Tuesday (Feb 28) announced a net profit of US$252.3 million for the second half of 2022 ended December, down 42 per cent from earnings of US$434.3 million in the same period in 2021. 

Revenue for the second half of the year was up 18 per cent to US$11.1 billion, due primarily to higher sales in Astra’s automotive segment, financial services, heavy equipment and mining operations and higher sales in direct motor interests.

The board of directors has recommended a final dividend of US$0.83 per share, up from US$0.62 per share in 2021.

The dividend, if approved by shareholders at the upcoming annual general meeting, will be paid out on Jun 30. 

The latest dividend brings Jardine C&C’s total payout for 2022 to US$1.11 per share, versus US$0.80 per share in 2021.

Things, however, looked more upbeat for the company on a full-year basis.

The company’s full-year profit for 2022 came in at US$739.8 million, up 12 per cent from US$660.6 million in 2021. 

The group said underlying profit for the year hit a record high of about US$1.1 billion, 39 per cent higher than 2021. 

Astra achieved a record profit as it benefited from Indonesia’s strong economic recovery and higher commodity prices, while the group’s non-Astra interests collectively also made a record contribution, mainly due to the strong performance of Truong Hai Group Corporation (Thaco) and Direct Motor Interests. 

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Astra contributed US$913 million to the group’s underlying profit, 39 per cent higher than the previous year, driven primarily by the recovery in the Indonesian economy and higher commodity prices.

Meanwhile, Thaco’s contributions rose 34 per cent to US$83 million due to a strong performance from its automotive business.

Looking ahead, Jardine C&C’s chairman Ben Keswick said the company expects to face challenges from uncertainties around the global economic outlook.

The group nonetheless said it is well-positioned to achieve sustainable growth through the opportunities in South-east Asia.

Shares of Jardine C&C gained 1.9 per cent or S$0.55 to close at S$29.71 on Tuesday, before the results announcement.