Jardine Cycle & Carriage Ltd’s Latest Earnings: Revenue and Profit Growth Continues

Jardine Cycle & Carriage Ltd (SGX: C07) reported its results for the first-half of 2017 last Friday. The reporting period was from 1 January 2017 to 30 June 2017.

The majority of Jardine C&C’s revenue comes from its 50.1%-owned Indonesian conglomerate, PT Astra. The conglomerate has a diverse business, with segments like automotive, financial services, heavy equipment and mining, agribusiness, information technology, and infrastructure, logistics and others.

You can learn more about the company here or catch up with the previous quarter’s earnings here.

Financial highlights

The following’s a quick take on its financial figures for the first-half of 2017:

1. Revenue rose 11% year-on-year to US$8.5 billion.

2. Underlying profit attributable to shareholders rose 13% year-on-year to US$375 million.   

3. The firm’s share of associates’ and joint ventures’ results (after tax) increased from US$135.9 million in 2016’s first-half to US$171.1 million in 2017’s first-half.  

4. Underlying earnings per share (EPS) increased 13% from US$0.84 in the first-half of 2016 to US$0.95 per share in the first-half of 2017.

5. Cash flow from operations came in at US$843.5 million, and capital expenditure was at US$357.9 million. Jardine C&C generated a free cash flow of US$485.6 million.  

6. As of 30 June 2017, the group had US$2.48 billion in cash and equivalents and US$5.9 billion in debt. A year ago, the conglomerate had US$2.42 billion in cash and equivalents and around US$5.4 billion in debt.

Jardine C&C’s closed the first-half with double-digit growth in both revenue and profits. The performance comes after recording flat sales in 2016. The firm generated sufficient free cash flow. The balance sheet took on some additional debt compared to the year before.

The board of directors recommended a final dividend of US$0.18 per share, unchanged from the year ago.

Operational highlights

For the first-half, PT Astra saw growth in most of its segments. Heavy equipment and mining led the way with an 84% increase to US$63.3 million in underlying profits. Meanwhile, the financial services and agribusiness segments posted 35% and 33% growth in underlying profits respectively. The positive numbers were offset by weaker profits at its infrastructure and logistics and information technology segments.    

Elsewhere, Jardine C&C’s direct motor business had a tough first-half, recording a 20% decline in underlying profits. There were weaker profits in Vietnam, Malaysia and Indonesia which all posted substantially double digit declines. Singapore bucked the trend with 11% year over year growth.

Ben Keswick, the Chairman of Jardine C&C, provided the following outlook:

“The outlook for the rest of the year is positive for Astra, although its results may be tempered by increasing competition in the car market and soft demand in the motorcycle market. The Group’s Direct Motor Interests and Other Interests will continue to face challenges.”

Foolish summary

Jardine C&C last traded at S$40.08 last Friday. At that price, the conglomerate had a price-to-earnings ratio of 15 times and a dividend yield of around 2.5%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.