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Jardine Strategic Holdings Limited Reported a Strong 2018 Full-Year Result

Last week, Jardine Strategic Holdings Limited (SGX: J37) reported its 2018 full year (FY18) result. As a quick introduction, Jardine Strategic is a conglomerate with interest 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) and Jardine Matheson Holdings Limited (SGX: J336).

Here, we will look at 10 things that investors should know from its latest earnings update.

  1. FY18 revenue increased 11% year on year to US$34.1 billion.
  2. Underlying full-year operating profit (excluding non-trading items) jumped 27% year on year to US$3.7 billion.
  3. Underlying full year profit attributable to shareholders improved 14% year on year to US$1.8 billion.
  4. Similarly, underlying earnings per share (EPS) was up by 16% year on year to US$3.14.
  5. FY18 operating profit margin was higher at 10.9% as compared to 9.5% in FY17.
  6. Jardine Strategic generated operating cash flow of US$4.0 billion, up from US$3.8 billion in FY17.
  7. As of 31 December 2018, the company’s non-financial services net debt stood at US$6.0 billion (10% gearing), up from US$3.8 billion as of 31 December 2017.
  8. Segment-wise, Jardine Matheson, Hong Kong Land, Dairy Farm, Mandarin Oriental, Jardine Cycle and Carriage (exclude Astra) and Astra all reported year-on-year growth in underlying profit in 2018.
  9. The company recommended a final dividend per share of US$0.24. Including interim dividend of US$0.10, total dividend per share for FY18 would be US$0.34, up 6% year on year.
  10. Jardine Strategic’s Chairman and Managing Director Ben Keswick commented:

“After a good performance in 2018 driven primarily by Astra, Hongkong Land and Jardine Cycle & Carriage, we expect the Group to face more challenging conditions in 2019 due to economic uncertainties affecting consumer sentiment and commodity prices.”

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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. The Motley Fool Singapore recommends Hongkong Land and Dairy Farm.