Jardine Matheson narrows H1 net loss to US$117m

JARDINE Matheson Holdings (JMH) on Thursday reported a net loss of US$117 million for the first half ended June 30, 2021, narrowing from US$775 million a year ago.

The group recorded a non-trading net loss of US$732 million in H1, compared with US$1.1 billion in the first half of 2020. This was largely due to semi-annual revaluation of investment properties in Hongkong Land.

Underlying net profit rose 65 per cent to US$615 million. Within the overall 65 per cent growth, about 59 per cent reflected recovering business performance and 6 per cent reflected the impact of completing the privatisation of Jardine Strategic Holdings, said JMH.

Loss per share was 0.35 US cent compared with 2.09 cents a year ago.

The board is recommending an interim dividend of 44 US cents per share, in line with the year before.

Group revenue increased 10 per cent to US$17.5 billion. Astra, one of JMH's largest profit contributors, saw revenue increase 27.7 per cent to US$14.1 billion. Jardine Motors, another significant contributor, saw revenue rise 36.8 per cent to US$16.1 billion.

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With the exception of Dairy Farm, the group said all of its significant businesses saw improved profits, including reduced losses from Mandarin Oriental and Dairy Farm's associate, Maxim's. However, group profits still remain around 17 per cent behind the levels seen prior to the onset of the pandemic.

Astra reported net profit equivalent to US$615 million under Indonesian reporting standards, a 61 per cent increase after excluding the gain on the disposal of the interest in Permata Bank.

This was mainly due to improvements in the performance of its automotive businesses, against the backdrop of an Indonesian economy which remains resilient as a result of high commodity prices, said JMH.

JMH expects the absence of tourists from the Chinese mainland to continue impacting the businesses in North Asia, including Hongkong Land's Central retail portfolio in Hong Kong, Dairy Farm's health and beauty business, and Mandarin Oriental's hotels.

The counter ended at US$60.68 on Thursday, up US$0.28 or 0.46 per cent.