Jardine Cycle & Carriage's profit up 22% to $542.7m in 1H17

Contributions from its 50.1% stake in Astra pulled its profits up.

Jardine Cycle & Carriage’s (JC&C) half year profit grew by 22% YoY from $446.1m (US$328m) to $542.7m (US$399m).

According to the company’s financial statement, revenue grew by 11% from $10.5b (US$7.7b) to $11.6b (US$8.5b). Most of the growth was driven by automotive business Astra, in which the company has a 50.1% stake.

Underlying earnings per share went up 13% from $1.14 (US$0.84) to $1.29 (US$0.95).

Astra contributed $428.5m (US$315m) to the group’s underlying profit, an increase of 27%.

JC&C’s Direct Motor segment contributed $85.7m (US$63m) whilst its other interests contributed $10.9m (US$8m).

JC&C’s net cash was $395.8m (US$291m) at the end of June, lower than $964.4m (US$709m) at the end of 2016.

This reduction was caused by Astra’s investments in toll roads, a power plant and property, and the company’s subscription in Siam City Cement’s rights issue at $172.7m (US$127m).

Net debt within Astra’s financial services was $5.0m (US$3.7m). JC&C’s parent net cash was at $19.0m (US$14m), compared to the end of 2016’s $209.5m (US$154m).

JC&C chairman Ben Keswick said, “The outlook for the rest of the year is positive for Astra, although its results may be tempered by increasing competition in the car market and soft demand in the motorcycle market. The Group’s Direct Motor Interests and Other Interests will continue to face challenges.”