Jardine Matheson Holdings' 2019 profits up 65% to $3.93b

Hongkong Land contributed $1.5b to the group’s total underlying profit.

Jardine Matheson saw its profit surge 65% YoY to $3.93b (US$2.84b) in 2019 from $2.38b (US$1.72b) in 2018, a bourse filing revealed. This is despite its revenue dipping 4% YoY to $56.66b (US$40.92b) from $58.89b (US$42.53b).

The underlying profit also fell by 4% YoY to $2.20b (US$1.59b) in 2019 from $2.3b (US$1.66b). The main contributors to underlying profit by activity were property at 29%, automotive interests at 24%, engineering, heavy equipment, mining, construction and energy at 19% and retailing and restaurants at 16%.

Greater China accounted for 58% of the group’s underlying profit and Southeast Asia accounted for 42%.

By its segments, Hongkong Land contributed $1.5b (US$1.08b) to the group’s total underlying profit, inching up 4% YoY thanks to higher contribution from the Chinese mainland.

Jardine Matheson’s motor vehicle operations posted underlying profit of $271.38m (US$196m), primarily due to a strong contribution from the investment in Zhongsheng, which saw increased sales and stable margins in H1 2019.

Jardine Pacific produced an underlying net profit of $227.07m (US$164m), which is 2% YoY higher than in 2018. This was attributed to its Hong Kong operations and increasing revenues via business efficiency initiatives. The net profit after non-trading gains was at $394.61m (US$285m).

Meanwhile, Dairy Farm’s underlying operating profit slipped 14% YoY in 2019 to $605.07m (US$437m), primarily due to the impact of the social unrest in Hong Kong. Mandarin Oriental’s underlying profit also fell from $90m (US$65m) in 2018 to $56.77m (US$41m) in 2019, no thanks to the closure of The Excelsior, the social unrest in Hong Kong and the major renovation in Bangkok.

Lastly, Jardine Cycle & Carriage posted underlying profits of $1.19b (US$863m) which dipped 1% YoY.

Jardine Matheson’s board declared a final dividend of $0.18 (US$0.128).