Swire Pacific (19) H2 2025 earnings summary

Executive summary

• Underlying profit attributable to shareholders rose 9% year-over-year to HK$11.4 billion, driven by capital recycling, strong aviation, and property divisions, while reported profit fell 32% due to investment property revaluation losses.

• Revenue increased 10% to HK$90.5 billion, with recurring underlying profit up 5% to HK$9.8 billion.

• Ordinary dividend per 'A' share rose 13% to HK$3.80, reflecting robust financial health and liquidity.

• Solid financial position with gearing ratio reduced to 20.6% and available liquidity of HK$52.7 billion.

• Continued disciplined execution of growth strategy across property, beverages, and aviation segments, with significant progress in sustainability targets.

Financial highlights

• Statutory attributable profit was HK$2,938 million, down from HK$4,321 million in 2024 due to non-recurring items and fair value losses.

• Cash generated from operations increased 35% to HK$17,020 million.

• Net debt decreased 8% to HK$65.3 billion; gearing improved to 20.6%.

• Weighted average cost of debt at 3.6%, with 73% of borrowings on fixed rates; average debt maturity 3.5 years.

• Share buy-back programme completed, with 25.1M 'A' shares and 15.4M 'B' shares repurchased for HK$1.84 billion.

Outlook and guidance

• Positive outlook for core divisions in 2026, with new property developments and improving consumer sentiment in Hong Kong and Chinese Mainland.

• Beverages expected to benefit from improved market conditions and e-commerce focus, though Southeast Asia remains challenging.

• Aviation to see capacity growth, with Cathay group expanding routes and new HAECO Xiamen facility opening in late 2026.

• Global uncertainties, especially in the Middle East, may impact aviation and overall group performance.

• Continued execution of investment plans in Hong Kong, Chinese Mainland, and Southeast Asia.