Jardine Cycle and Carriage (Jardine C&C) says its performance for the 3QFY2024 ended September was “down slightly” from the same period last year.
Astra, the group’s 50.1%-owned subsidiary in Indonesia, reported an increase in underlying profits, excluding fair value adjustments from its equity investments. However, its contribution to JC&C was impacted by the weaker Indonesian rupiah.
During the period, Astra recorded lower car sales due to a subdued wholesale car market, while its financial services division recorded higher earnings on larger loan portfolios.
Within the group’s Indonesian portfolio, Tunas Ridean similarly saw lower automotive sales volume and lower profits during 3QFY2024.
In the group’s Vietnam portfolio, Truong Hai Group Corporation (THACO) recorded an increase in automotive sales volume due to improving consumer sentiment. That said, its contribution to JC&C was impacted by the weaker Vietnamese Dong.
Meanwhile, REE’s performance was affected by lower earnings from its power generation business, due to unfavourable hydrology and lower hydropower demand during 3QFY2024. In October, JC&C completed its public tender offer to acquire additional REE shares, increasing its shareholding from 34.9% to 35.7%.
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In Singapore, despite Cycle & Carriage reporting higher sales volume and margins, its overall profit was impacted by lower contributions from used car operations.
In August, JC&C sold its entire 25.54% interest in Siam City Cement, which allowed it to recycle US$344 million ($460.2 million) of capital. The group says the divestment is “consistent with JC&C’s strategy to evolve its portfolio in line with its long-term growth and sustainability objectives”.
Looking ahead, JC&C expects to maintain momentum in the group’s underlying performance for the remainder of the year and adds that it remains confident that the quality of JC&C’s overall portfolio will deliver long- term growth.
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Shares in JC&C closed 3 cents lower, or down 0.11%, at $27.85 on Nov 13.
