SINGAPORE (Aug 2): Jardine Matheson Holdings and Jardine Strategic Holdings reported 152% and 75% higher earnings of US$2.3 billion ($3.2 billion) and US$1.7 billion respectively for the 1H ended June.
This was mainly due to the sale of the group’s interest in Jardine Lloyd Thompson which produced a net gain of US$874 million and US$1.5 billion for Jardine Matheson and Jardine Strategic respectively.
There was also a non-trading net gain of US$878 million and US$1.5 billion for Jardine Matheson and Jardine Strategic respectively.
Jardine Matheson reported 1H underlying profit of US$738 million, 3% lower compared to a year ago while underlying earnings per share fell 3% at US$1.96.
1H revenue came in 5% lower at US$20.2 billion, while revenue, including 100% of associates and joint ventures, was up 13% at US$50.3 billion.
On the other hand, Jardine Strategic reported 1% lower 1H underlying profit of US$779 million, while underlying earnings per share came in flat at US$1.38.
1H revenue came in 6% lower at US$16 billion, while revenue, which includes 100% of Jardine Matheson, associates and joint ventures, was up 13% at US$50.3 billion.
Jardine Strategic and Jardine Matheson have declared interim dividends 10.50 US cents per share and 44 US cents per share respectively, 5% higher than a year ago.
The group says 1H profit was hit by a slow start to the year by Astra, while Hongkong Land and Dairy Farm both saw increases in profit.
While no underlying profit was recognised by Jardine Matheson from Jardine Lloyd Thompson, the reported net profit benefitted from a significant gain on the sale of the group’s stake.
At Mandarin Oriental, underlying profit was lower during the first half of the year, primarily due to the closure of The Excelsior in Hong Kong and reduced earnings from the Bangkok hotel, which was largely closed in March 2019 for a major renovation.
In Southeast Asia, Jardine Cycle & Carriage saw lower contribution from Truong Hai Auto Corporation in Vietnam while Astra’s performance was weaker in the period.
The group says it faced challenging conditions in the period, primarily caused by weaker consumer sentiment in Indonesia.
Within Jardine Matheson’s businesses, Jardine Pacific saw lower overall results, mainly due to the timing of project completions in Gammon.
There was a stronger contribution from JEC and steady performances in Jardine Schindler and Jardine Restaurants, but lower results from Hactl.
Jardine Motors saw its earnings increase overall, benefitting from a higher contribution from its investment in Zhongsheng and an improved result from Zung Fu in mainland China, partially offset by lower earnings at Zung Fu in Hong Kong.
In its outlook statement, the group expects to benefit from further growth in Hongkong Land and Dairy Farm in 2H, but overall results will depend to a large extent on consumer sentiment in its key markets.
On Friday, shares in Jardine Matheson closed 73 cents lower at $60.85 while shares in Jardine Strategic closed 36 US cents lower at US$34.64.
