Jardine Matheson (J36) H1 2024 earnings summary

Executive summary

• Underlying profit attributable to shareholders was $550M, down 33% year-over-year, mainly due to non-recurring impairments in Hongkong Land's Chinese mainland development projects and challenging markets in Indonesia and Vietnam.

• Interim dividend maintained at $0.60 per share; net loss attributable to shareholders was $40M versus a $566M profit in H1 2023.

• DFI Retail underlying profit rose 127% year-over-year, while Hongkong Land posted a small underlying loss due to significant non-cash provisions.

• Group continues to focus on portfolio evolution, sustainability, and leadership changes, with new CEOs in four portfolio companies and strengthened board expertise.

• Major investments include a $1B Landmark transformation in Hong Kong and expansion of Mandarin Oriental's hotel portfolio.

Financial highlights

• Revenue for H1 2024 was $17.28B, down 5% year-over-year; underlying EPS fell 33% to $1.91.

• Net non-trading loss attributable to shareholders was $590M, mainly from fair value losses on investment properties.

• Shareholders' funds at 30 June 2024 were $28.2B, down from $29.0B at year-end 2023.

• Group liquidity stood at $11.8B, with $5.1B in cash and $6.7B in unused committed debt facilities.

• Cash from operations up 8% year-over-year to $2.97B.

Outlook and guidance

• Full-year results expected to be modestly below 2023, with focus on sustainable long-term value and growth in Asia.

• Dividend policy remains to grow with earnings over time; interim dividend held flat.

• Strong balance sheet and leadership changes position the Group for future growth.

• No major further impairments expected at Hongkong Land in the near term.