10 Quick Things That Investors Should Know About Jardine Matheson Holdings Limited’s First Half of 2018 Results
At the end of July 2018, Jardine Matheson Holdings Limited (SGX: J36) reported its 2018 first half earnings update. Jardine Matheson is a conglomerate with interest in the web of Jardines companies.
Here, let’s look at 10 things that investors should know from its latest earnings update.
1. Revenue for the six months ended 30 June 2018 increased 14% year-on-year to US$21.3 billion.
2. Underlying operating profit (excluding non-trading items) improved 22% year-on-year to US$1.9 billion.
3. Underlying net profit attributable to shareholders grew 6% year-on-year to US$792 million.
4. Similarly, underlying earnings per share was up by 7% year-on-year to US$2.11.
5. Underlying operating profit margin rose from 8.3% a year ago to 8.9% for the first half of 2018.
6. Year-to-date, Jardine Matheson generated operating cash flow of US$1.6 billion, down from US$2.33 billion in the corresponding period last year. The fall was mainly due to negative working capital movements.
7. As at 30 June 2018, the company’s non-financial services’ net debt stood at US$5.0 billion (9% gearing), up from US$3.4 billion (6% gearing), as at 31 December 2017.
8. Jardine Motors, Dairy Farm International Holdings Ltd (SGX: D01), Jardine Cycle & Carriage Ltd (SGX: C07) and Mandarin Oriental International Limited (SGX: M04) reported that their underlying profit improved by 6%, 2%, 17% and 49%, respectively, as compared to the same period last year. On the other hand, Jardine Pacific, Jardine Lloyd Thompson and Hongkong Land Holdings Limited (SGX: H78) reported year-on-year declines in underlying profit — down by 6%, 2% and 2% respectively.
9. Jardine Matheson announced an interim dividend per share of US$0.42, up from US$0.40 last year.
10. The group’s chairman, Sir Henry Keswick, commented:
“After a good performance in the first half of 2018 driven primarily by Astra and Jardine Cycle & Carriage, we are optimistic for a stronger second half of the year, with these companies continuing to perform well and the contributions of other businesses expected to improve.”