Jardine Cycle & Carriage (C07) H1 2024 earnings summary

Executive summary

• Underlying profit for H1 2024 fell 14% year-over-year to US$500 million, mainly due to weaker regional currencies, softer demand, and lower commodity prices in Indonesia and Vietnam.

• Revenue declined 8% year-over-year to US$10.7 billion, primarily from lower sales in Astra's automotive, heavy equipment, and coal mining operations.

• Interim dividend per share maintained at US¢28 (SGD 0.28), unchanged from 2023.

• Portfolio actively managed with capital released from non-core assets and reinvestment in growth opportunities, including a public tender offer for REE in Vietnam.

• New segment reporting structure introduced, emphasizing Indonesia, Vietnam, and regional interests.

Financial highlights

• Indonesia contributed US$513 million (down 9% year-over-year); Vietnam contributed US$31 million (down 12%).

• Net profit attributable to shareholders was US$483 million, a 25% decrease year-over-year.

• Shareholders' funds at US$7.76 billion; net asset value per share at US$19.6 as of 30 June 2024.

• Group consolidated net debt (excluding Astra Financial Services) reduced to US$543 million from US$1.1 billion at previous year-end.

• Gearing (excluding FS) improved to 3% from 6%.

Outlook and guidance

• Management expects resilient performance for the rest of 2024, with confidence in sustainable long-term growth despite FX and commodity headwinds.

• Continued active portfolio management and strategic capital allocation to drive future growth.