REG - Jardine Matheson Hdg - Interim Management Statement

Jardine Matheson HoldingsAnnouncement

18/05/2023 11:15

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RNS Number : 8982Z  Jardine Matheson Hldgs Ltd  18 May 2023

18th May 2023

For immediate release

 

The following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United Kingdom.

 

Jardine Matheson Holdings Limited

Interim Management Statement

 

18th May 2023 - Jardine Matheson Holdings Limited (the 'Company') today
publishes its Interim Management Statement for the first quarter of 2023.

 

Most of the Group's businesses performed strongly in the first quarter
compared with the same period last year, with Astra, DFI Retail Group ('DFI'),
Mandarin Oriental and Jardine Pacific all delivering increases in underlying
net profit.  While the Group achieved a strong overall performance in the
period, challenges remain from the global economic environment and softening
commodity prices. The Group, however, remains confident in the economic
resilience of its markets and is well-positioned to benefit from their
recovery.

 

Hongkong Land's underlying profit in the first quarter was lower than the same
period in 2022.  There was a reduced contribution from the Development
Properties business, due to fewer planned sales completions on the Chinese
mainland.  The contribution from Investment Properties was broadly unchanged
compared to the same period last year, with improved performance from the
retail segment, partly offset by a lower contribution from the Hong Kong
office portfolio.

 

In the group's Central office portfolio, physical vacancy increased to 6.3%,
compared to 4.9% at the end of 2022.  On a committed basis, vacancy was
5.8%.  Rental reversions continued to be negative in the period.  Leasing
activity improved in recent months, with a meaningful increase in enquiries in
the first quarter compared to the last quarter and the same period last year,
but headwinds in global financial markets have dampened incremental office
demand from the financial services sector.

 

Hongkong Land's Development Properties business saw a modest recovery in
market sentiment for residential properties on the Chinese mainland,
underpinned by government policy support.  The group's attributable interest
in contracted sales was US$408 million in the first quarter, compared to
US$213 million in the equivalent period in 2022, mainly due to more planned
sales launches.  Sales activity has continued to recover during April and
overall planned sales completions for 2023 are expected to be higher than the
prior year.

 

Jardine Pacific saw improved performance from most of its businesses in the
period, compared with the first quarter of last year.  Jardine Restaurants,
however, was impacted by softer sales in Hong Kong and the absence of
government support received last year.  The disposal of the shareholding in
Greatview, announced in late January, remains on track, subject to regulatory
approvals.

 

DFI saw significantly improved year-on-year performance in the first
quarter.  This principally reflected increased profitability of its
associates, in particular a much-improved performance by Maxim's.  The
Group's subsidiaries also saw improved overall performance, with strong
recovery in the Health and Beauty and Convenience divisions more than
offsetting lower results in the Grocery Retail division as consumer buying
patterns normalised compared with the first quarter of 2022 and digital
investments continued.

 

Mandarin Oriental recorded an underlying profit in the first quarter of 2023,
driven by improved performance from its owned hotels and management
business.  Asia in particular benefitted from the removal of travel
restrictions. The group's owned hotels performed robustly, particularly in
Hong Kong, Tokyo, and Bangkok, with strong rates.

 

The first quarter saw the announcement of a new management contract for a
luxury beach resort in Mallorca, Spain, scheduled to open by the end of 2024;
the rebranding of the Emirates Palace hotel in Abu Dhabi as Emirates Palace
Mandarin Oriental, Abu Dhabi; and the closure in March of Mandarin Oriental,
Singapore, for a substantial renovation.

 

Jardine Cycle & Carriage ('JC&C') reported growth in the first quarter
of 2023, compared to the same period last year, principally due to a higher
contribution from Astra.

 

Astra reported a 25% increase in underlying earnings, excluding fair value
gains from its equity investments, with improvements across most divisions.
Astra's automotive division recorded higher car and motorcycle sales, leading
to higher lending volumes in its financial services division. The heavy
equipment and mining division continued to benefit from high coal prices,
resulting in higher volumes in its mining contracting and mining businesses
and an increase in heavy equipment sales. The agribusiness division, however,
was adversely impacted by lower crude palm oil prices and sales volumes.

 

Beyond Astra, JC&C's Direct Motor Interests also delivered improved
performance, but THACO and Siam City Cement saw lower profits primarily as a
result of challenging market conditions in Vietnam.

 

On 17th April 2023, the Company announced the appointment of Janine Feng as an
Independent Non-executive Director with effect from 5th May 2023.

 

Jardine Matheson is a diversified Asian-based business group with unsurpassed
experience in the region. Its interests include Jardine Pacific, Jardine
Motors, Hongkong Land, DFI Retail Group, 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
standard 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 companies.

 

- end -

 

For further information, please contact:

 

Jardine Matheson Limited

Jonathan
Lloyd
(852) 2843 8223

 

Brunswick Group Limited

William
Brocklehurst
(852) 5685 9881

 

This and other Group announcements can be accessed through the internet at
www.jardines.com.

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