Jardine Matheson Q1 performance similar year on year; lower full-year profit expected

3 weeks ago 46

Updated

May 23, 2024, 09:06 PM

Published

May 23, 2024, 09:05 PM

SINGAPORE – Jardine Matheson Holdings on May 23 reported that the performance of its businesses in the first quarter of 2024 was similar with that in the year-ago period.

However, the conglomerate said that it expected its full-year underlying profits to be “modestly down” compared with 2023, mainly due to its share of expected non-cash impairment charges in Hongkong Land’s development properties business in China, as well as lower commodity prices at Astra.

“We remain, however, confident in the economic resilience of the group’s markets and believe we are well-positioned to benefit from their recovery,” Jardine Matheson said in a business update filed with the Singapore Exchange.

The group said its performance for the three months ended March 31, 2024, was on a par with Q1 2023’s, with “strong growth” from DFI Retail Group and stable performances from Hongkong Land and Mandarin Oriental. This was partially offset by lower contributions from Astra, Jardine Pacific and Jardine Cycle & Carriage (JCNC).

DFI’s underlying profits in Q1 2024 grew more than 60 per cent on year, driven primarily by improved performances in its food, convenience and health and beauty divisions.

Meanwhile, Mandarin Oriental recorded a “small underlying profit”, with owned hotels in Asia logging an improvement in earnings, partially offset by lower contributions from Europe.

Hongkong Land’s Q1 underlying profit was in line with that of the same period a year ago. The company had better performance from its luxury retail portfolio and Singapore office business, largely offsetting lower contributions from its Hong Kong office portfolio. However, market sentiment for residential properties in China remained weak, reducing total contracted sales.

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