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Good News From Jardine Matheson Holdings Limited’s Full-Year Result

Last week, Jardine Matheson Holdings Limited (SGX: J36) reported its 2018 full-year (FY18) result. Jardine Matheson is a conglomerate with interest in the web of Jardines companies that include Jardine Strategic Holdings Limited (SGX: J37), Jardine Cycle & Carriage Ltd (SGX: C07), Hongkong Land Holdings Limited (SGX: H78), Dairy Farm International Holdings Ltd (SGX: D01), and others.

Current and prospective investors in Jardine Matheson should keep reading; we’ve compiled the 10 most important things investors should know from the company’s latest earnings update.

  1. Full-year revenue increased 10% year on year to US$42.5 billion.
  2. Underlying full-year operating profit (excluding non-trading items) improved 13% year on year to US$4.0 billion.
  3. Underlying full-year profit attributable to shareholders improved 10% year on year to US$1.7 billion.
  4. Similarly, underlying earnings per share (EPS) was up by 10% year on year to US$4.53.
  5. FY18 operating profit margin improved from 8.4% last year to 8.7%.
  6. Jardine Matheson generated operating cash flow of US$4.1 billion, down from US$4.3 billion in FY17.
  7. As of 31 December 2018, the company’s non-financial services net debt stood at US$5.9 billion (10% gearing), up from US$3.4 billion (6% gearing) as of 31 December 2017.
  8. Segment wise, Jardine Pacific, Jardine Lloyd Thompson, Hong Kong Land, Dairy Farm, Mandarin Oriental, Jardine Cycle and Carriage (exclude Astra), and Astra reported year-on-year growth in underlying profit, offset by a weaker performance in Jardine Motors.
  9. The company recommended a final dividend per share of US$1.28. Including the interim dividend of US$0.42, the total dividend per share for FY18 would be US$1.70, up 6% year on year.
  10. Jardine Matheson’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.