Jardine Matheson Holdings H1 net profit up 34% to US$566 million
JARDINE Matheson Holdings on Friday (Jul 28) posted a net profit of US$566 million for the first half of 2023, up 34 per cent from earnings of US$423 million in the year-ago period.
The group attributed this to continued strong performance by Astra and DFI Retail, which marked a significant improvement in its results.
Earnings per share rose 33 per cent to 1.95 US cents, from 1.47 US cents previously.
Astra, which contributed the most to Jardine Matheson’s earnings, reported net income excluding fair-value adjustments of US$1.2 billion, 20 per cent higher than in the first half of 2022.
Its improved performance was seen across most of Astra’s business divisions, especially its automotive, financial services and heavy equipment and mining businesses.
Another top performer in Jardine Matheson’s portfolio, DFI Retail Group, also returned to the black with a net profit of US$8 million for the first half of 2023, on contributions from its health and beauty division, as well as its convenience division.
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Meanwhile, Mandarin Oriental posted improved H1 results, with revenue rising 31 per cent to US$260.7 million, led by strong performance of its hotels in Europe and the Middle East.
Hongkong Land’s performance, however, was flat compared with the same period last year, as its residential development business continued to be impacted by lower planned sales completions. The property group reported an underlying profit of US$422 million for H1, marginally down from US$425 million a year ago.
Jardine Matheson also noted that its interest in Zhongsheng – an automobile dealership in China – was significantly lower than in 2022 as the business was impacted by lacklustre consumer demand in the mainstream car market and the strong performance of the electric vehicle market in mainland China.
Looking ahead, the group said it remains focused on evolving its portfolio and will recycle capital towards strategic higher-growth initiatives where appropriate.
It will continue investing in business opportunities, such as Astra’s deal to acquire a 90 per cent interest in two nickel mining and processing businesses as part of its strategy of diversifying into other minerals and renewable energy.
Jardine Cycle & Carriage has also increased its interest in Vietnam-based Refrigeration Electrical Engineering Corporation from 33.6 per cent to 34.4 per cent through on-market purchases.
To boost operational excellence, Jardine Pacific’s Hong Kong Air Cargo Terminals Limited introduced robotics into some of its goods handling operations, while as part of innovation efforts, Jardine Cycle & Carriage embarked on a used car and aftersales partnership with Carro.
Ben Keswick, Jardine Matheson’s executive chairman, said: “We are encouraged by the results delivered by most of our businesses in the first half and are optimistic that earnings growth will continue for the remainder of the year.
“The group has a strong balance sheet and will continue to focus on opportunities in its core, growing markets in Asia, to create sustainable long-term growth.”
Jardine Matheson declared an interim dividend of US$0.60 per share, which will be paid out on Oct 11.
Its shares closed 1 per cent or US$0.47 higher at US$49.65 on Friday.
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