Jardine Matheson, Jardine Strategic 1H19 underlying profits slip on weaker car market

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Jardine Matheson Holdings and Jardine Strategic Holdings both reported Friday slightly weaker underlying net profit for the first half, citing a weaker Indonesian car market, partly offset by profit growth from Jardine Motors, Hongkong Land and Dairy Farm.

For the six months ended 30 June, Jardine Strategic posted underlying profit, which distinguishes between ongoing business performance and non-trading items, of US$779 million, down 1 percent on-year.

Jardine Matheson reported first half underlying profit fell 3 percent on-year to US$738 million.

“While most businesses delivered resilient performances, the car market in Indonesia was weaker,” Ben Keswick, chairman and managing director, said in both companies’ statements. “In the second half of the year we expect to benefit from further growth in Hongkong Land and Dairy Farm, but the Group’s overall results will depend to a large extent on consumer sentiment in our key markets.”

Within Jardine Matheson’s directly held businesses, the sale of its stake in Jardine Lloyd Thompson in April 2019 led to a loss of earnings, the filing said. In addition, Jardine Pacific posted lower results, mainly on the timing of project completions in Gammon, it said.

Jardine Motors posted an earnings increase on a higher contribution from its investment in Zhongsheng and an improvement from Zung Fu’s mainland China operations, partially offset by lower earnings at Zung Fu’s Hong Kong operations, the filing said.

Hongkong Land’s profit rose modestly, Dairy Farm’s health and beauty business posted a strong performance and its food business showed some signs of recovery, the filing said. Mandarin Oriental’s underlying profit was lower, it said.

Jardine Matheson posted first half net profit rose 152 percent on-year to US$2.25 billion, while Jardine Strategic reported its first half net profit rose 75 percent on-year to US$1.66 billion.

Jardine Strategic reported revenue for the first half fell 6 percent on-year to US$16.0 billion, while gross revenue, including Jardine Matheson, associates and joint ventures, rose 13 percent on-year to US$50.27 billion in the first half.

Jardine Matheson’s revenue for the first half fell 5 percent on-year to US$20.17 billion, while its gross revenue including 100 percent of associates and joint ventures rose 13 percent on-year to US$50.27 billion, the filing said.

Read more about Jardine Strategic earnings and Jardine Matheson earnings.

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