TRANSPORT & LOGISTICS | Staff Reporter, Singapore

Jardine Strategic Holdings profit surged 49.17% to $10.84b in 2017

Jardine Matheson’s profit contribution rose to $491.04m or 4.5% of the total.

Jardine Strategic Holdings Limited’s (JSH) profits surged 49.17% YoY from $7.26b (US$5.5b) in 2016 to $10.84b (US$8.21b) in 2017. According to its financial statement, the group’s revenue was $41.66b (US$31.56b), compared with $39b (US$29.55b) in 2016.

Jardine Matheson’s (JMH) share of results rose from $307.56m (US$233m) to $491.04m (US$372m).

JSH chairman Henry Keswick said, “Within Jardine Matheson’s businesses, Jardine Pacific achieved good results in 2017 as Gammon’s contribution recovered and Hactl benefited from increased cargo throughput. Jardine Motors’ increased earnings were led by strong results from mainland China. Jardine Lloyd Thompson’s contribution was higher due to a combination of a good trading performance and the absence of the restructuring costs seen in 2016,” the company said.

At Hongkong Land, underlying profit grew due to the strength of both its investment and development property activities. Positive performances in most of Dairy Farm’s retail formats and key associates were, however, offset by poor performances in its supermarket and hypermarket businesses in Southeast Asia and it recognized $84.48m (US$64m) of business rationalization costs, JSH said.

JSH noted that Jardine Cycle & Carriage produced good profit growth if 16% as Astra’s results improved, although there was a reduced overall contribution from the group’s Direct Motor Interests and Other Strategic Interests including Thaco and Siam City Cement. “The results from Astra’s automotive activities, however, were lower due to reduced earnings from motor cars in challenging markets,” Keswick added.

The board is recommending a final dividend of 29.7 cents per share, which produces a full-year dividend of 42 cents per share, up 7% from the prior year.

"The Group’s key markets in Greater China and Southeast Asia look well placed for 2018 as the good levels of economic growth seen in 2017 appear set to continue. This, when coupled with the development initiatives that are being pursued across the Group’s businesses, provides the basis for future profit growth," Keswick said. 

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