RNS Number : 0985S
Jardine Matheson Hldgs Ltd
11 November 2021
11th November 2021
For immediate release
Jardine Matheson Holdings Limited
Interim Management Statement
11th November 2021 - Jardine Matheson Holdings Limited (the
'Company') today publishes its Interim Management Statement for the
third quarter of 2021.
There was an encouraging improvement in performance in many of
the Group's businesses in the third quarter compared with the same
period last year, but the Group continues to face challenges caused
by the COVID-19 pandemic and the measures taken to control it.
Conditions are expected to remain uncertain across the Group's
markets for the remainder of the year. Nevertheless, the Group
remains resilient and well-positioned to achieve its long-term
growth objectives, with a strong balance sheet and liquidity
In these challenging times, we are grateful to our colleagues
across the Group who continue to respond with professionalism,
resilience and dedication in the face of significant
Looking at the individual performances of the Group's
businesses, Jardine Pacific reported a lower contribution in the
third quarter compared with the same period last year, primarily
due to a reduction in government support in the current period,
with a number of businesses seeing a fall in profitability.
Excluding the impact of prior year government support, however,
most businesses delivered improved performances.
Jardine Schindler saw a fall in profitability in the quarter,
reflecting lower margins driven by the competitive environment.
Gammon and JEC both reported lower profits, reflecting reduced
sales which were primarily due to project timing, although margins
improved. The results of Jardine Restaurant Group fell as a result
of the resurgence of COVID-19 in some markets and rising supply
chain costs, but the business saw good profit growth driven by
solid delivery sales in Taiwan and the benefits realised from
ongoing process re-engineering projects.
HACTL reported a satisfactory performance, with the business
benefitting from the increase in air cargo tonnage which has partly
resulted from the disruption in sea-freight and associated material
cost increases in shipping, although it has also faced pricing
pressure. There was a lower contribution from Greatview principally
due to rising raw material costs.
Jardine Motors saw its earnings in the third quarter increase
compared with the same period last year, mainly driven by a strong
performance on the Chinese mainland. Despite lower sales volume,
Zung Fu China and Zhongsheng both saw higher margins and
profitability on new car sales due to limited stock supply.
However, the dealerships in the United Kingdom reported a small
decline as volume was impacted by nationwide supply issues. The
transfer of Zung Fu China to Zhongsheng was completed in early
Hongkong Land's Central office portfolio continued to perform
relatively well due to its high quality and unique positioning,
despite rising office vacancies across the city. Although Hong
Kong's borders remained closed to visitors, the group's retail
sales increased compared to the second quarter of 2021 and were
higher than the same period in 2020, resulting from the provision
of lower levels of temporary rent relief to tenants. Rental
reversions in the group's Singapore office portfolio were positive
in the period.
Hongkong Land's Development Properties business saw market
sentiment on the Chinese mainland weaken in the quarter relative to
the first half of the year, amidst tightened credit conditions for
the property sector. Contracted sales at the group's projects,
however, remained in line with expectations.
The overall performance of DFI Retail Group ('DFI') in the third
quarter continued to be affected by the pandemic as well as
underlying losses reported by its key associate, Yonghui, and its
results were significantly lower than the same period in 2020, when
performance benefitted from both panic buying and government
support. Grocery Retail like-for-like sales were lower in the third
quarter than in the same period last year, as customer buying
behaviours continued to normalise from a high sales base in 2020,
but there continues to be encouraging progress in the
transformation of the business and there was strong growth in
underlying profitability in the quarter compared to the third
quarter of 2019, before the onset of the pandemic. The group's
Convenience business saw improved like-for-like sales, driven
primarily by strong growth in Hong Kong and Macau, and underlying
profitability in the third quarter improved relative to the first
Like-for-like sales for the group's Health and Beauty businesses
improved in the third quarter relative to the first half, driven
predominantly by Mannings Hong Kong and Guardian Singapore.
However, reduced levels of government support impacted
profitability in the quarter compared to the same period last year.
More generally, relative to historical trends, profitability
continued to be significantly affected by an ongoing lack of
tourist custom and reduced footfall in malls in key Southeast Asian
Mandarin Oriental saw trading conditions generally improve
towards the end of the second quarter, and this trend continued
into the third quarter. Performance did, however, vary by market
depending on government actions to curtail the spread of COVID-19.
In Asia, most properties were dependent on domestic business with
international borders remaining effectively closed, and as a
consequence both occupancy levels and room rates remained low. The
exception was the Chinese mainland, where operations continued to
gain from strong demand in a large domestic market. The operating
environment in both Europe and America also improved substantially,
with results benefitting from the relaxation of travel and freedom
of movement restrictions, and ongoing government support in a
number of markets.
Overall, Jardine Cycle & Carriage ('JC&C') performed
well in the third quarter, reflecting improvements across all parts
of its portfolio. Year-to-date underlying profit recovered
substantially, compared to the same period in 2020, although the
group's overall results for the first nine months of 2021 were
still slightly lower than the same period in 2019, prior to the
onset of the pandemic. Astra delivered a significantly improved
performance across its divisions, notwithstanding the continuing
COVID-19 restrictions during the period. There was a particularly
strong contribution from automotive, where car sales volume
benefitted from the implementation of temporary luxury car sales
incentives; and from a number of Astra's other businesses which
benefitted from higher commodity prices. Astra's financial services
division benefitted from higher lending volumes and lower loan loss
JC&C's Direct Motor Interests also delivered an improved
performance, with Cycle & Carriage in Singapore achieving
higher sales volume and improved margins, particularly for its
premium car segment and used car operations, and Cycle &
Carriage Bintang in Malaysia continuing to benefit from a reduction
in government sales tax and lower operating costs. Tunas Ridean in
Indonesia reported higher contributions from its automotive and
financial services operations.
JC&C's Other Strategic Interests performed well in the first
nine months of the year, although the third quarter performance of
some businesses was affected by lockdown measures implemented in
Vietnam and Thailand. Many of THACO's automotive showrooms were
closed during this period, but they gradually re-opened in October.
REE's businesses remained largely operational during the lockdown.
Siam City Cement saw lower sales volumes and selling prices as
construction and infrastructure activities slowed, and it was also
adversely impacted by higher energy costs.
Jardine Matheson is a diversified Asian-based business group
with unsurpassed experience in the region. Its interests include
Jardine Pacific, Jardine Motors, Hongkong Land, Dairy Farm,
Mandarin Oriental, Jardine Cycle & Carriage and Astra. These
companies are active in the fields of motor vehicles and related
operations, property investment and development, food retailing,
health & beauty, home furnishings, engineering and
construction, transport services, restaurants, luxury hotels,
financial services, heavy equipment, mining and agribusiness.
Jardine Matheson Holdings Limited is incorporated in Bermuda and
has a primary listing on the London Stock Exchange, with secondary
listings in Bermuda and Singapore. Jardine Matheson Limited
operates from Hong Kong and provides management services to Group
- end -
For further information, please contact:
Jardine Matheson Limited
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
Sunitha Chalam (852) 3512 5050
This and other Group announcements can be accessed through the
internet at www.jardines.com.
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(END) Dow Jones Newswires
November 11, 2021 04:47 ET (09:47 GMT)
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