Jardine Matheson Holdings (JMH), a diversified Asian-based business group, says it continues to face challenges caused by the Covid-19 pandemic in its 1Q interim management statement.
While the outlook for the group’s full-year underlying performance remains uncertain, JMH remains “resilient and well-positioned” to achieve its long-term growth objectives with a strong balance sheet and liquidity position.
JMH’s acquisition of Jardine Strategic Holdings (JSH) was completed on April 14.
See: Jardine Matheson Holdings to acquire remaining stake in Jardine Strategic for US$5.5 bil; Jardine Strategic shareholders to receive US$33 per share and Jardine minority shareholders oppose US$1 bil 'discount' in buyout plan
The acquisition would have increased JMH’s net borrowings at Dec 31, 2020, to US$9.2 billion ($12.29 billion) and net gearing to 16% on a pro forma basis.
JMH says it “continues to maintain a prudent funding approach”.
Within the group, Jardine Pacific delivered “good overall performance” in the 1QFY2021 on the back of higher contributions from Gammon, Jardine Schindler, Jardine Restaurants and HACTL, while JEC was impacted by lower contracting sales.
Jardine Aviation continued to be affected by low flight volumes.
Jardine Motors saw increased earnings in the 1QFY2021 due to broad-based growth across all markets y-o-y.
Hongkong Land’s office portfolio remained resilient during the period due to its high-quality tenant base and active lease management.
See also: Hongkong Land Holdings says Covid-19 will have impact on its full-year performance
Dairy Farm’s performance remained “significantly affected” by Covid-19 with lower grocery retail sales recorded y-o-y. The group’s health and beauty businesses remained impacted by the pandemic as well.
See also: Dairy Farm International says overall performance in 1Q remains 'significantly affected' by Covid-19
Mandarin Oriental continued to face “extremely challenging conditions”.
See also: Mandarin Oriental reports underlying losses of US$41 mil in 1Q and expects 'further loss' in 2Q
Most of Jardine Cycle and Carriage’s operations saw lower performance y-o-y, especially in Indonesia. However, its overall performance has “gradually improved” in recent quarters. That said, the motor group said that the pandemic and related containment measures are expected to continue to affect its performance “for some time”.
Astra delivered weaker contributions from most of its businesses compared to the 1QFY2020.
Jardine Cycle and Carriage’s motor interest in Singapore saw improved margins, particularly from the used car segment. The automotive business in
Malaysia benefitted from a government sales tax reduction and cost savings initiatives, but the Indonesian business reported lower contributions across its operations.
Other Strategic Interests performed well, with a continuing recovery in THACO’s automotive business and higher sales volumes in Siam City Cement.
Shares in JMH closed 47 US cents higher or 0.7% up at US$66.48 on May 6.
