Jardine Strategic’s FY15 profits jump 11% to US$62.8b

Thanks to a host of one-off gains.

Brimming with exceptional gains, Strategic Holdings’ (JSH) FY15 earnings jumped 7% YoY to about US$1.95b, or about $2.71b.

According to the company’s media release, FY15’s earnings enjoyed a US$565m boost in the valuation of investment properties, a profit on the sale of the Group’s investment in Acleda Bank, as well as reversal of an investment impairment by Jardine Cycle & Carriage.

The group’s revenue for 2015, which includes 100% of revenue from associates and joint ventures, inched up US$65.3b, from 2014’s US$62.8b. Meanwhile, underlying profit before tax came in at around US$3.34b, reflecting a 21% YoY drop.

Partially offsetting these, however, was the decline in the market value of JSH’s Zhongsheng investment, which was taken through profit and loss account in line with accounting requirements. The company asserts, though, that it remains confident in the medium to long-term prospect of the business.

The group reports it expects challenging trading conditions to persist in 2016. Nevertheless, it believes its robust finances and clear objectives puts JSH in a sweet spot to benefit from the growing spread of affluence in the region.