Jardine Cycle and Carriage (Jardine C&C) has posted an underlying profit of US$500 million ($669 million) for the 1HFY2024 ended June, down 14% y-o-y.
After accounting for non-trading items of US$17 million, which mainly comprised unrealised fair value losses related to non-current investments, the company’s profit attributable to shareholders was US$483 million, down 25% compared to US$648 million in the same period last year.
Revenue in 1HFY2024 was down by 8% y-o-y to $10.7 billion. This was mainly due to lower sales from Astra’s automotive, heavy equipment and coal mining operations, as well as Cycle & Carriage Malaysia.
For the period, the company plans to maintain the interim dividend payout of 28 US cents to its shareholders.
In its earnings commentary, Jardine C&C group managing director Ben Birks notes that its businesses in Indonesia and Vietnam experienced softer consumer demand and lower commodity prices in the first half of 2024.
Weaker domestic currencies in these countries also had an impact on the overall profit contribution in US dollar terms, says Birks. “Notwithstanding these current headwinds, to deliver attractive returns to our shareholders, Jardine C&C has continued to actively take steps to strengthen future earnings through aligning strategies, capital allocation and leadership.”
See also: Envictus reports profit turnaround with earnings of RM50.6 mil
Shares in Jardine C&C closed 8 cents lower on Aug 1, down 0.3% at $25.88.
