Jardine Matheson Holdings H1 profits crashed 57% to US$928m

Jardine Pacific saw lower results from its restaurants and transport services.

Jardine Matheson Holdings’ (JMH) profits for the first half of 2018 fell by 57% to US$928m from US$2.17b last year. Gross revenue was up by 19% to US$44.35m from US$37.42b last year.

According to its financial results, Jardine Pacific saw lower results from its restaurants and transport services and steady performances from Gammon, Jardine Schindler, and JEC. This brought down underlying profit by 6% to US$63m.

Jardine Motors’ business in China and the UK came under pressure, whilst its higher underlying profit included a contribution from Zhongsheng, which became an associate in the second half of 2017. Underlying net profit dipped by 6% to US$87m.

Jardine Cycle & Carriage’s net profit crashed 56% US$174m after accounting for net non-trading losses of US$240m. “These result from the adoption of a new accounting standard that requires the unrealised gains or losses arising from the revaluation of equity investments at the end of each financial period to be included in the profit and loss account,” said JMH chairman Henry Keswick.

Astra’s contribution to underlying profit rose 12% to US$354m, whilst Jardine Cycle & Carriage’s Direct Motor Interests contributed an underlying profit of US$74m, 18% above the previous year.

“There were improved margins on passenger cars and increased contributions from used cars in Singapore, as well as higher contributions from Tunas Ridean in Indonesia and Truong Hai Auto Corporation in Vietnam,” Keswick added.

The chairman added that JMH benefited from Vinamilk dividends received in the period and profit growth at Siam City Cement in Thailand and at Refrigeration Electrical Engineering Corporation in Vietnam.

Astra’s net profit jumped 11% in Indonesian accounting standards to US$750m. There were higher profits from the group’s heavy equipment and mining businesses and an improved contribution from its financial services division, which more than offset lower contributions from its agribusiness and infrastructure operations.

JMH’s board has declared an increased interim dividend of US 42 cents per share.