JARDINE Cycle & Carriage (JC&C) posted an underlying profit of US$576.8 million for the second half ended Dec 31, 2023, a 0.5 per cent increase from the year-ago period. This has enabled the group to turn in a full-year underlying profit growth of 5.8 per cent.

The group on Tuesday (Feb 27) attributed the “strong” full-year growth, which lifted underlying profit to almost US$1.2 billion, to record results from Astra, which is one of Indonesia’s largest diversified business groups with core businesses spanning heavy equipment and mining.

In particular, Astra contributed US$1 billion to the group’s underlying profit, 12 per cent higher than the previous year. This reflected improved performances from most of its businesses, the group stated.

Its direct motor interests segment contributed US$68 million, which is 8 per cent more than in FY22, on higher profits from Tunas Ridean in Indonesia and Cycle & Carriage Bintang in Malaysia.

Contributions from the group’s other strategic interests fell 2 per cent to S$84 million, however, due to a drop in earnings reported by Refrigeration Engineering Electrical. This was offset by higher profits in Siam City Cement.

The group’s H2 revenue, meanwhile, fell 4.1 per cent to US$10.5 billion, from US$11 billion in the year-ago period. Full-year revenue came in at US$22.2 billion, 3.1 per cent higher than the year before.

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Underlying earnings per share for the half was US$1.46, up from US$1.45 in the year-ago period. For the full year, underlying earnings per share was US$2.94, versus FY22’s US$2.77.

The board has proposed a final one-tier tax-exempt dividend of US$0.90 per share for the year, up from US$0.83 per share in 2022. This will bring the total dividend for the year to US$1.18 per share, which is 6.3 per cent higher than 2022’s US$1.11 per share.

The group uses underlying profit, as opposed to net profit, in its internal financial reporting, to distinguish between ongoing business performance and non-trading items. In a footnote, the group said the management considers it “a key performance measurement that enhances the understanding of the group’s underlying business performances”.

That said, the group’s net profit for H2 was 124.8 per cent higher than the year-ago period, at US$567.1 million. For the full year, net profit came in at US$1.2 billion, up 64.2 per cent from FY22’s US$740 million.

As for the group’s consolidated net debt position, the amount, excluding the net borrowings within Astra’s financial services subsidiaries, was US$1.1 billion as at end-2023, from a net cash position of US$893 million at the end of 2022. 

The group attributed the rise to the deployment of capital at Astra in a number of strategic projects, as well as continued investment in the organic capital expenditure needs of its ongoing businesses, and enhanced dividends paid in 2023 at Astra. 

Net debt within Astra’s financial services subsidiaries rose from US$2.8 billion at the end of 2022 to US$3.4 billion. JC&C corporate net debt was US$1.3 billion, down from US$1.5 billion at the end of 2022.

The group said it expects the year ahead to be challenging in view of lower commodity prices and “only a mild recovery of sentiment” in Vietnam. 

Its businesses, nevertheless, have made good progress in 2023 and will remain focused on their strategic priorities to build a solid foundation for strong long-term growth, it stated.

Shares of JC&C rose 0.04 per cent or S$0.01 to S$26 on Tuesday, before the results’ release.