Jardine Cycle & Carriage Ltd’s Latest Earnings: Revenue and Profit Grow After a Flat 2016
Last Friday, Jardine Cycle & Carriage Ltd (SGX: C07) reported its 2017 first quarter earnings. The reporting period was for 1 January 2017 to 31 March 2017.
As a quick background, the majority of Jardine C&C’s revenue and profit comes from its 50.1%-owned Indonesian conglomerate, PT Astra. The conglomerate has a diverse business, with segments such as automotive, financial services, heavy equipment and mining, agribusiness, information technology, and infrastructure, logistics and others.
You can catch up with the results from Jardine C&C’s previous quarter here.
The following’s a quick take on some of Jardine C&C’s latest financial figures:
1. For 2017’s first quarter, Jardine C&C’s revenue was US$4.23 billion, up 16% from 2016’s first quarter.
2. The firm’s share of associates’ and joint ventures’ results (after tax) increased by 91% from US$81.5 million in the first quarter of 2016 to US$155.8 million.
3. For the reporting quarter, profit attributable to shareholders soared 50% to US$210.4 million. Underlying profit attributable to shareholders, which excludes fair value changes and one-off events, was also up 44% year-on-year to US$202 million.
4. Jardine C&C’s earnings per share (EPS) was up 53% from US$0.36 in 2016’s first quarter to US$0.53 in 2017’s first quarter. Underlying earnings per share was up 44% year-on-year to US$0.51.
5. Cash flow from operations came in at US$315.4 million with capital expenditure clocking in at US$176.2 million. This provides Jardine C&C with positive free cash flow of US$139.2 million.
6. As of 31 March 2017, Jardine C&C had US$2.59 billion in cash and equivalents and US$5.82 billion in debt. This is a decline from the US$2.47 billion in cash and equivalents and US$5.31 billion in debt that the company recorded on 31 December 2016.
In all, Jardine C&C recorded growth in sales and even higher growth in underlying profit for the quarter. The firm generated positive free cash flow, but its balance sheet held slightly more debt.
Operational highlights and the outlook ahead
Almost all sectors under PT Astra reported profit growth. The strongest gains came from the heavy equipment and mining sector and the agribusiness sector – the two sectors saw their profits soar 107% and 94% year-on-year, respectively. Overall, PT Astra’s profit was up 67% to US$184.5 million.
Net income growth in Jardine C&C’s direct motor interests suffered a 36% decline to US$22.5 million. Underlying profit in Vietnam was weak (a 64% decline) while Malaysia and Myanmar posted no profit and a loss, respectively. Singapore offset some of the declines by recording 20% growth in underlying profit
Ben Keswick, the Chairman of Jardine C&C, sounded upbeat about the company’s outlook. He said:
“The outlook for the rest of the year is positive with Astra expected to benefit from the continued growth in the Indonesian economy, supported by higher commodity prices, although for its automotive activities there is a risk of increasing price competition. The Group’s Direct Motor Interests and the Other Interests are likely to face increased competition.”
At its the closing share price of S$47.23, Jardine C&C trades at a price-to-earnings ratio of 17.5 times and has a dividend yield of 2.2%.