Jardine Matheson books ‘strong performance’ in Q1 but warns of macro challenges
Uma Devi
JARDINE Matheson Holdings (JMH) said in an interim management statement on Thursday (May 18) that it had achieved a “strong overall performance” in the first quarter of the year ended March, but warned that challenges remain from the global economic environment and softening commodity prices.
In a statement published on the Singapore bourse, the company said most of its business units performed strongly in Q1 this year, compared to the corresponding quarter last year.
The likes of Astra, DFI Retail Group, Mandarin Oriental and Jardine Pacific all delivered increases in underlying net profit, JMH said. It added that it remains confident in the economic resilience of its markets and believes it is well-positioned to benefit from their recovery.
Hongkong Land’s underlying profit in the first quarter was lower than the same period in 2022 due to reduced contribution from the development properties business, on the back of fewer planned sales completions in mainland China.
Jardine Pacific saw improved performance from most of its businesses in the period, compared with the first quarter of last year.
Jardine Restaurants, however, was impacted by softer sales in Hong Kong and the absence of government support received last year. The disposal of the shareholding in Greatview, which was announced in late January, remains on track, subject to regulatory approvals, said JMH.
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DFI Retail Group, meanwhile, saw significantly improved year-on-year performance in the first quarter. This chiefly reflected increased profitability of its associates, in particular a much-improved performance by Maxim’s.
DFI Retail Group’s subsidiaries also saw improved overall performance, with a recovery in the health and beauty and convenience divisions more than offsetting lower results in the grocery retail division, as consumer buying patterns normalised compared with the first quarter of 2022 and digital investments continued.
Mandarin Oriental recorded an underlying profit in the first quarter of 2023, driven by improved performance from its owned hotels and management business.
JMH said Asia, in particular, benefitted from the removal of travel restrictions. Mandarin Oriental’s owned hotels performed robustly, particularly in Hong Kong, Tokyo, and Bangkok, with strong rates.
Jardine Cycle & Carriage reported growth in the first quarter of 2023, compared to the same period last year, principally due to a higher contribution from Astra. Jardine Cycle and Carriage holds a 50.1 per cent stake in Astra, South-east Asia’s largest automotive group.
Astra reported a 25 per cent uptick in underlying earnings, excluding fair value gains from its equity investments, with improvements across most divisions.
Beyond Astra, Jardine Cycle & Carriage’s direct motor interests also delivered improved performance, but Thaco and Siam City Cement saw lower profits primarily as a result of challenging market conditions in Vietnam.
Shares of JMH fell 0.5 per cent or US$0.23 on Thursday to close at US$49.60.
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