Jardine C&C posts 4.4% rise in H2 underlying profit to US$602 million

JARDINE Cycle & Carriage (C&C) posted a 4.4 per cent rise in its underlying profit of US$602 million for the six months ended December 31, 2024. This came as revenue for the period rose 9 per cent to US$11.6 billion

However, its full-year underlying profit was down 5 per cent to US$1.1 billion due to foreign exchange differences, the company said in its earnings statement on Thursday (Feb 27).

The company’s revenue for the full year was flat at US$22.3 billion. But its corporate costs had increased to US$83 million, from US$52 million previously, largely due to the translation of foreign currency loans. There was a “swing” from a forex gain of US$22 million to a loss of US$17 million this year, the company noted.

Excluding the foreign translation impact, its underlying profit would have risen 3 per cent instead.

Jardine C&C’s board proposed a final dividend of 84 US cents per share, down from last year’s final dividend of 90 US cents per share. The latest dividend will be paid on Jun 13.

After accounting for non-trading items, the company’s FY2024 net profit stood at US$946 million, 22 per cent lower than the previous year.

The non-trading items comprised a US$127 million loss from the stake disposal of Siam City Cement and unrealised fair value losses of US$28 million related to non-current investments.

Going by segment, the Indonesian business’ contribution to underlying profit fell 3 per cent to US$1 billion. In particular, contributions from Astra were hit by a weaker Indonesian rupiah.

“On a rupiah basis, however, Astra has delivered another year of record earnings, mainly due to higher earnings from its motorcycle sales, financial services, and infrastructure and logistics businesses,” Jardine C&C said in its earnings statement.

The company’s Vietnam business contributed US$103 million to its underlying profit, unchanged from the previous year. Contributions from automobile player Thaco were up 10 per cent to US$39 million.

Thaco’s automotive profit benefited from registration tax incentives in the second half of 2024, with unit sales 10 per cent higher, the company noted.

Separately, Jardine C&C’s Regional Interests – which includes Cycle & Carriage and Toyota Motor – contributed US$55 million in underlying profit, up 9 per cent from 2023. Contributions from Cycle & Carriage rose 13 per cent to US$32 million, with increases in both new and used car sales in Singapore.

Jardine C&C delivered “resilient” performance despite challenging market conditions, said the company’s chairman John Witt in its earnings statement on Thursday (Feb 27).

“Looking ahead, we are confident the core businesses in our portfolio are well-positioned to benefit from strong mid and long-term prospects in their respective markets, as consumer sentiment recovers,” he said.

Jardine C&C ended Thursday at US$26.72, up 0.2 per cent.