Jardine Matheson underlying profit soars 22% in H1

Approximately 58% of the group’s profits were led by its Southeast Asian businesses.

Jardine Matheson Holdings Limited reported an underlying profit of $1.02b (US$747m) in the first half of 2022, an increase of 22% compared to the same time last year.

The group said that the 13 percentage points of growth was driven by improved business performance, with the balance reflecting a higher share of earnings in businesses formerly owned by Jardine Strategic Holdings Limited (JSH), following the completion in mid-April 2021 of the privatisation of JSH.

Jardine Matheson specifically saw strong growth in its Southeast Asian businesses led by led by Astra. It said that 58% of the group’s profit for H1 came from SEA.

Group revenue for the period was 4% higher at $25.22b, whilst gross revenue, including 100% of associates and joint ventures, was up 7% at $77.17b.

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The Group recorded a non-trading net loss in the first half of $446.49m, compared with a non-trading net loss of $1.008b in the first half of 2021. This was a result of a net decrease of $203.95m in the fair value of the Group’s other investments, the impairment of goodwill and investment in associates of $157.10m, and a net fair value loss of $96.46m upon the semi-annual revaluation of investment properties in Hongkong Land as at 30th June 2022. The Group recorded a profit attributable to shareholders for the period of $582.92m, compared with a loss of $161.23m in the first half of 2021. 

“The Group expects, however, that earnings growth will substantially moderate for the full year, as COVID19 continues to impact the Group’s businesses, particularly in Hong Kong and on the Chinese mainland. The Group has a strong balance sheet and will continue to focus on opportunities in its core, growing markets of Asia to create sustainable long-term growth,” Executive Chairman Ben Keswick said.