Earlier this month, Jardine Matheson Holdings Limited (SGX: J36) reported its 2017 results.
As a brief introduction, Jardine Matheson is a conglomerate with interests in the web of Jardines companies which include Jardine Cycle & Carriage Ltd (SGX: C07), Hongkong Land Holdings Limited (SGX: H78), Dairy Farm International Holdings Ltd (SGX: D01), Mandarin Oriental Limited (SGX: M04), Jardine Lloyd Thompson, Jardine Pacific and Jardine Motor.
Here are 10 things that investors should know from Jardine Matheson Holdings’ 2017 results:
1. Revenue increased 6% year-on-year to US$ 39.5 billion.
2. Underlying operating profit (excluding non-trading items) improved 5% year-on-year to US$3.3 billion.
3. Underlying profit attributable to shareholders improved 13% year-on-year to US$1.6 billion.
4. Similarly, underlying earnings per share (EPS) was up by 12% year-on-year to US$4.17.
5. Operating profit margin for 2017 was 8.4%, relatively unchanged compared to 2016’s margins.
6. Jardine Matheson Holdings generated operating cash flow of US$ 4.3 billion in 2017, up from the US$4.0 billion recorded in 2016.
7. As of 31 December 2017, the company’s non-financial services net debt stood at US$ 3.4 billion, up from the US$ 2.1 billion record at the end of 2016.
8. In terms of business segments, Jardine Pacific, Jardine Motors, Jardine Lloyd Thompson, Hong Kong Land and Astra reported year-on-year growth in underlying profits. On the flipside, Dairy Farm, Mandarin Oriental and Jardine Cycle and Carriage (excluding Astra) reported year-on-year declines in underlying profit.
9. The conglomerate recommended a final dividend per share of US$1.20. Including interim dividend of 40 cents, the total dividend per share for 2017 is US$ 1.60, up 7% year-on-year.
10. Jardine Matheson’s Chairman, Sir Henry Keswick, provided the following outlook for 2018:
“The Group’s principal markets across Greater China and Southeast Asia remained strong during 2017, and appear well set for 2018. This, coupled with development initiatives being pursued by our businesses, provides the Group with a firm foundation for long-term growth.”
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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 Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has recommendations for Hongkong Land and Dairy Farm.