TIDMJAR TIDMJDS
RNS Number : 1524L
Jardine Matheson Hldgs Ltd
28 April 2020
Jardine Matheson Holdings Limited
Interim Management Statement
28th April 2020 - Jardine Matheson Holdings Limited (the
"Company") today publishes its Interim Management Statement for the
first quarter of 2020.
Challenging trading conditions due to the spread of COVID-19 and
the measures to control it have adversely affected the Group's
performance over the period. While conditions in Greater China have
recently shown some improvement, the Group's businesses in
Southeast Asia are now facing increasingly difficult conditions,
particularly in Indonesia as the impact of the pandemic has grown
more severe and anti-pandemic measures have taken effect. As a
result, the Group's profits for the first half of the year will be
significantly reduced compared with the prior year. For the full
year, results will depend on the required duration of the
anti-pandemic measures but market sentiment is also expected to
remain weak for some time.
Nonetheless, the Group remains resilient and well-positioned to
achieve its long-term growth objectives. The balance sheet and
liquidity position of the Group remain strong. Across the Group, a
number of actions are being taken to manage costs and preserve
cash, including the reduction, suspension or deferral of
non-essential operating and capital expenditure.
The wellbeing of our employees is a top priority and we have
taken a number of actions to mitigate the impact of the pandemic,
including the adoption of a range of health and safety measures. In
these anxious and challenging times, we are grateful to our
colleagues across the Group who have responded with
professionalism, resilience and dedication in the face of
significant uncertainties.
Of the Group's businesses held directly by the Company, Jardine
Pacific delivered a mixed performance in the period, with
individual businesses impacted to varying degrees by the pandemic.
Gammon and Jardine Schindler saw lower profitability while JEC
reported a solid contribution, primarily from its Hong Kong
operations. The performance of Jardine Restaurant Group was below
that of the same period last year, as customer numbers fell. Within
Jardine Transport Services, HACTL produced a steady performance
which, however, was more than offset by a loss from aviation
services.
Jardine Motors saw its overall earnings decrease in the quarter.
Zung Fu China reported lower profitability, as automotive sales
were severely impacted by anti-pandemic measures, including
prolonged shutdowns. Zung Fu Hong Kong and the dealerships in the
United Kingdom have also been heavily impacted by the pandemic and
reported losses for the quarter. The contribution from Zhongsheng,
in respect of its performance from July to December 2019, was
higher, reflecting increased car sales and aftersales in that
period.
Within the businesses held by Jardine Strategic, there has been
a stable contribution from Hongkong Land's office portfolio.
Overall performance, however, was dampened by a decrease in
contracted sales in its Development Properties business on the
Chinese mainland - with sales offices closing and construction
activities being suspended for some two months - and by a reduction
in retail rents in its Investment Properties business, due to the
provision of rent relief to tenants impacted by weakened retail
sentiment.
Dairy Farm's overall performance in the period was adversely
impacted by the pandemic and deteriorating consumer sentiment.
While the Grocery Retail business benefitted from changing customer
behaviours as a result of anti-pandemic measures, as well as
operational improvements and the continuing turnaround of the
Southeast Asia business, these benefits were significantly
outweighed by a deterioration in the performance of Health and
Beauty in North Asia, Maxim's and the group's Convenience business,
which were all adversely affected by reduced customer numbers and
temporary store closures.
In Southeast Asia Health and Beauty, restrictions were initially
less severe, but government policies enforcing social distancing
began to take effect towards the end of the period in Malaysia and
Indonesia and trading will be adversely impacted in the second
quarter .
Mandarin Oriental's performance was severely impacted in the
first quarter, with a majority of the group's hotels effectively
closed. Most hotels in Asia remain open, but they are experiencing
single digit percentage occupancy levels. The business suffered a
loss in the period, which is expected to increase significantly in
the second quarter.
Jardine Cycle & Carriage experienced challenging conditions
in the first quarter as the spreading pandemic began to impact
conditions across its markets. Astra, despite solid performances in
its automotive and financial services businesses, and a higher
contribution from the group's agribusiness, saw overall performance
decline in the first quarter of the year, largely due to lower coal
prices and weakening consumer confidence. However, as the impact of
COVID-19 has grown more severe and anti-pandemic measures have
taken effect, Astra has faced increasingly difficult conditions and
its April performance has been adversely impacted. These conditions
are likely to persist for some time.
Jardine Cycle & Carriage's other motor interests in
Singapore, Malaysia and Indonesia were all impacted by a reduction
in market size and weak consumer sentiment. The group's interests
in Thaco and Siam City Cement were also adversely affected in the
period. The impact of anti-pandemic measures in Southeast Asia has
increased significantly in April, with the temporary closures of
many of the group's businesses. Both business and consumer
sentiment are expected to remain weak for some time.
Jardine Matheson is a diversified Asian-based business group
with unsurpassed experience in the region. Its interests include
Jardine Pacific, Jardine Motors, Hongkong Land, Dairy Farm,
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 and 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
David Ashton (852) 3512 5063
This and other Group announcements can be accessed through the
internet at www.jardines.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCPPUCWCUPUUBR
(END) Dow Jones Newswires
April 28, 2020 05:37 ET (09:37 GMT)
Jardine Strategic Holdin... (LSE:88EI)
Historical Stock Chart
From Apr 2024 to May 2024
Jardine Strategic Holdin... (LSE:88EI)
Historical Stock Chart
From May 2023 to May 2024