23rd May 2024
For immediate release
The
following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United
Kingdom.
Jardine Matheson
Holdings Limited
Interim Management
Statement
23rd May 2024 - Jardine Matheson Holdings Limited (the
'Company') today publishes its Interim Management Statement for the
first quarter of 2024.
The performance of the Group's businesses in the
first quarter was in line with the same period last year, with
strong growth from DFI Retail Group ('DFI') and stable
performances from Hongkong Land and Mandarin Oriental, partially offset by lower contributions from
Astra, Jardine Pacific and
JC&C.
Based on current market conditions, the Group's full
year underlying profits are expected to be modestly down against
2023. This primarily reflects the Group's share of expected
non-cash impairment charges in Hongkong Land's development
properties business on the Chinese mainland in the first half of
the year, in addition to previously anticipated first-half
headwinds, including lower commodity prices at Astra.
We remain, however, confident in the economic
resilience of the Group's markets and believe we are
well-positioned to benefit from their recovery.
DFI's underlying profits in the first
quarter of 2024 grew by over 60% compared to the same period in
2023, driven primarily by improved performances in the Food,
Convenience and Health and Beauty divisions. Maxim's reported
sales and profits in line with the prior year, while Yonghui saw
profit growth, underpinned by disciplined cost management during
its customary seasonal peak. In April 2024, DFI announced that it
had agreed to divest its Hero Supermarket business in
Indonesia.
Mandarin Oriental recorded a small underlying profit in the first
quarter, in line with expectations. The group's Management
Business generated solid fee income from hotels and the sale of
branded residences. Owned Hotels in Asia saw an improvement
in earnings compared to the first quarter of 2023, partially offset
by lower contributions from Europe. In April 2024, the
Company completed the sale of Mandarin Oriental, Paris, retaining a
long-term management contract. In March 2024, the
Company completed a comprehensive review and refresh of its
strategy to deliver its objective of being a brand-led,
guest-centric, global luxury hospitality business, which generates
strong returns for hotel owners and partners and creates value for
shareholders. In April, the Group acquired an
additional block representing around 5% of Mandarin Oriental's
shares, taking its holding to 85.3%.
Astra reported a 5% decrease in underlying earnings in the first
quarter, excluding fair value adjustments from its equity
investments, with a 9% decrease in net income for the automotive
division, which achieved lower car and motorcycle sales. The
profit from Astra's heavy equipment and mining division was also
lower, mainly due to lower coal prices. Astra's financial
services division benefitted from higher contributions from its
consumer and heavy equipment finance businesses on a larger loan
portfolio, while net income from agribusiness grew strongly, due to
higher crude palm oil sales.
Hongkong Land's underlying profit in the first quarter was in line
with the same period in 2023. Total contributions from
Investment Properties were broadly in line with the same period
last year, with better performance from the Company's luxury retail
portfolio and Singapore office business largely offsetting lower
contributions from the Hong Kong office portfolio.
Contributions from Development Properties were modest due to the
timing of sale completions. Market sentiment for residential
properties on the Chinese mainland remains weak, reducing total
contracted sales and Hongkong Land expects profits in the first
half of 2024 to be significantly lower than the same period last
year.
Jardine Pacific reported a lower overall contribution in the first
quarter, with losses incurred by Jardine Restaurant Group and Zung
Fu Hong Kong and a lower profit contribution from Jardine
Schindler, JEC and Gammon. Hactl's profit increased due to a
higher volume of cargo handled, but the business continues to face
labour shortages and higher staff costs. The disposal of
Jardine Pacific's shareholding in Jardine Aviation was completed on
1st March 2024.
JC&C experienced softer trading
conditions in its businesses in Vietnam, with THACO's automotive
sales flat due to challenging market conditions.
JC&C's Direct Motor interests saw lower profits compared to the
same period last year. Siam City Cement
delivered higher profits, however, due to lower energy costs.
Jardine Matheson is a diversified Asian-based business
group with unsurpassed experience in the region. Its interests
include Jardine Pacific, Hongkong Land, DFI Retail Group, Mandarin
Oriental, JC&C, Astra and Zhongsheng. These companies are
active in the fields of motor vehicles and related operations,
property investment and development, food retailing, health &
beauty, home furnishings, engineering and construction, transport
services, restaurants, luxury hotels, financial services, heavy
equipment, mining and agribusiness.
Jardine Matheson Holdings Limited is incorporated in Bermuda and
has a standard listing on the London Stock Exchange, with secondary
listings in Bermuda and Singapore. Jardine Matheson Limited
operates from Hong Kong and provides management services to Group
companies.
- end -
For further information, please contact:
Jardine Matheson Limited
Jonathan
Lloyd
(852) 2843 8223
Brunswick Group Limited
William
Brocklehurst
(852) 5685 9881
This and other Group announcements can be accessed
through the internet at www.jardines.com.