Swire Pacific (19) investor relations material

Executive summary

• Underlying profit was HK$5,476M, down 2% year-over-year; recurring underlying profit HK$4,712M, down 1%.

• Revenue rose 16% to HK$45,774M, with strong cash generation and robust liquidity.

• Statutory profit dropped to HK$815M, mainly due to non-cash fair value losses and fewer non-recurring gains.

• Major US property disposals and share buy-back programme (HK$5.9B) completed; ordinary dividend per 'A' share up 4% to HK$1.30.

• Aviation and Beverages delivered solid results, with Aviation benefiting from capacity growth and Beverages facing mixed regional performance.

Financial highlights

• Statutory profit fell to HK$815M from HK$3,914M in 1H2024 due to lower non-recurring items.

• Recurring underlying profit was HK$4,712M, down 1% year-over-year.

• Cash generated from operations increased 59% to HK$8,438M; net cash inflow before financing HK$6,161M.

• Gearing ratio at 22.7%, net debt HK$71.3B, available liquidity HK$52.6B.

• EBITDA margin for Beverages: 12.8%.

Outlook and guidance

• Uncertainty in core markets expected to persist, but some economic improvement emerging.

• Hong Kong office market remains subdued, but premium demand resilient; Chinese Mainland retail to gradually improve.

• Beverages: Subdued spending in Chinese Mainland, moderate growth in Vietnam, challenges in Cambodia and Thailand.

• Aviation: Robust travel demand, but cargo market outlook uncertain; HAECO expects stable performance and Xiamen relocation progressing.

• Focus on executing HK$100B investment plan, with 67% committed.