10 Quick Things Investors Should Know About Jardine Cycle & Carriage Ltd’s Latest Earnings
In early March, Jardine Cycle & Carriage Ltd (SGX: C07) released its 2017 full year earnings update.
As a quick introduction, Jardine Cycle & Carriage is a bona-fide conglomerate. In 2016, 71% of its underlying profit came from the Indonesia-listed Astra. Astra operates in Indonesia and itself has seven different business segments: Automotive; Financial Services; Heavy Equipment & Mining; Agribusiness; Infrastructure & Logistics; Information Technology; and Property.
Here are 10 things investors should know about Jardine Cycle & Carriage’s latest results:
1. Revenue for the year increased by 12% to US$17.70 billion.
2. Operating profit did even better, growing by 18% to US$ 1.76 billion.
3. Underlying profit attributable to shareholders also experienced strong growth, up 16% to US$788 million.
4. Similarly, Jardine Cycle & Carriage’s underlying earnings per share (EPS) grew 16% 199 cents.
5. The conglomerate’s operating profit margin was at 10.0% in 2017, up from 9.5% in 2016.
6. In 2017, Jardine Cycle & Carriage generated operating cash flow of US$ 1.65 billion, up from US$1.42 billion in 2016.
7. As of 31 December 2017, the conglomerate’s net debt stood at US$ 4.2 billion, up from US$ 2.8 billion at the end of 2017.
8. In 2017, Astra contributed US$641 million in underlying profit to Jardine Cycle & Carriage, up 28%. Meanwhile, Jardine Cycle & Carriage’s Direct Motor Interests business experienced a 25% fall in underlying profit to US$125 million. The Other Strategic Interests business saw its underlying profit grow by 3% to US$34 million.
9. The conglomerate recommended a final dividend of US$0.68 per share. Including the interim dividend of US$0.18 per share, Jardine Cycle & Carriage’s total dividend 2017 would be U$0.86, up 16% from 2016.
10.In Jardine Cycle & Carriage’s latest earnings update, Chairman Ben Keswick had some comments to share on the conglomerate’s outlook:
“After a satisfactory overall result in 2017, Astra should continue to benefit in 2018 from improving economic conditions and stable commodity prices, although the competition seen in the car market is expected to intensify. The Group’s Direct Motor Interests will continue to face challenges, while its Other Strategic Interests are expected to produce growth.”