TIDMJDS TIDMJAR
RNS Number : 3785E
Jardine Strategic Hldgs Ltd
05 November 2020
5th November 2020
For immediate release
Jardine Strategic Holdings Limited
Interim Management Statement
5th November 2020 - Jardine Strategic Holdings Limited (the
'Company') today publishes its Interim Management Statement for the
third quarter of 2020.
The Group continued to face challenging trading conditions in
the third quarter of the year caused by the spread of COVID-19 and
the measures taken to control it. There was some improvement in
performance across many of the Group's businesses compared with the
second quarter, and the Group continued to benefit in the period
from government support in a number of markets. Underlying net
profits, however, declined compared to the third quarter of 2019
and performance is expected to remain weak, significantly
influenced by the impact of COVID-19 on business and wider
communities and the reduction of government support, for the
remainder of the year. The Group is, nonetheless, resilient and
well-positioned to achieve its long-term growth objectives, and its
balance sheet and liquidity position remain strong.
In these challenging times, we are grateful to our colleagues
across the Group who continue to respond with professionalism,
resilience and dedication in the face of significant
uncertainties.
Of the Group's businesses held directly by Jardine Matheson,
Jardine Pacific saw an overall increase in earnings in the third
quarter compared with the second quarter, with improved
contributions from JEC, HACTL and Jardine Restaurant Group's Pizza
Hut businesses in Hong Kong and Taiwan. Gammon's order book
remained healthy, boosted by securing the HKIA Terminal 2 Expansion
Works project in August. Other businesses saw weaker underlying
trading performances. Aviation Services in particular continued to
be significantly impacted by the challenges facing the aviation
sector, with low flight volumes, and the business remained
loss-making. Jardine Pacific completed the disposal of the JTH
Group with the sale of Innovix in September this year, which
followed the disposal of JOS in late 2019.
Jardine Motors saw its performance in the third quarter improve
compared with the second quarter. Zung Fu China and Zhongsheng both
benefitted from a strong recovery in luxury new car sales after the
lifting of shut down orders. The performance of Zung Fu Hong Kong
and the dealerships in the United Kingdom was supported by some
improvement in market conditions.
Within the businesses held by the Company, Hongkong Land's
overall performance in the period continued to be negatively
impacted by the pandemic, particularly in relation to retail rent
in the Investment Properties business, although contributions from
the office portfolio in the quarter remained stable. On the Chinese
mainland, sentiment in Hongkong Land's main markets has generally
recovered to pre-pandemic levels.
Dairy Farm's overall performance in the third quarter improved
compared to the second quarter but continued to be affected by
COVID-19. Grocery Retail performed strongly in North Asia,
Singapore and Malaysia, supported by operational improvements as
part of the group's multi-year transformation programme, as well as
changing customer behaviours as a result of the pandemic.
Performance in Indonesia, however, was significantly impacted in
the period by government restrictions.
Dairy Farm's Convenience and Home Furnishings businesses also
performed better than in the second quarter. The group's overall
performance however, continued to be adversely affected by weaker
results in Health and Beauty - which was impacted both by
government restrictions in a number of markets and the lack of
overseas tourists in Hong Kong - and at Maxim's, which saw lower
numbers of customers due to pandemic-related restrictions.
On 16th October 2020, Dairy Farm announced it had signed an
agreement to deepen its partnership with Philippines-listed
multi-format retail group Robinsons Retail Holdings Inc. ('RRHI')
and to build a leading pharmacy business in the Philippines by
combining the group's interest in wholly-owned Rose Pharmacy Inc.
with RRHI subsidiary South Star Drug Inc. This transaction, which
included the sale of Dairy Farm's direct interest in Rose Pharmacy
Inc, completed on 30th October 2020.
Mandarin Oriental also continued to be severely impacted by
COVID-19. Whilst almost all hotels in the portfolio have reopened,
business levels remain low in most locations due in large part to
national and regional government pandemic restrictions. There were
some encouraging performances from hotels on the Chinese mainland
and certain resort properties, but demand for city locations
continued to be modest. A material recovery in business levels is
not expected until the second half of 2021 at the earliest and the
group will therefore report a substantial loss for the 2020 full
year.
Jardine Cycle & Carriage 's performance continued to be
affected by challenging trading conditions, caused by weak business
and consumer sentiment, although there was some improvement in a
number of its businesses in the third quarter compared to the
second quarter.
Astra saw the performance of its businesses - particularly that
of its automotive, heavy equipment and mining, and financial
services divisions - continue to be impacted by the pandemic and
related containment measures in Indonesia. Third quarter earnings
were higher than in the second quarter, but most segments remained
under pressure.
Jardine Cycle & Carriage's Direct Motor Interests continued
to be impacted by the pandemic. In Other Strategic Interests,
THACO's automotive business recovered during the third quarter and
is now performing well, while Siam City Cement also saw stronger
results due to cost saving measures. The performance of Vinamilk
was solid, while that of REE was moderately lower.
***
Jardine Strategic is a holding company which takes long-term
strategic investments in multinational businesses, particularly
those with an Asian focus, and in other high quality companies with
existing or potential links with the Group. Its principal
attributable interests are in Jardine Matheson 59%, Hongkong Land
50%, Dairy Farm 78%, Mandarin Oriental 79% and Jardine Cycle &
Carriage 75%, which in turn has a 50% interest in Astra. It also
has minority interests in Zhongsheng and Greatview Aseptic
Packaging. Jardine Strategic is 85% held by Jardine Matheson.
Jardine Strategic Holdings Limited is incorporated in Bermuda
and has a standard listing on the London Stock Exchange, with
secondary listings in Bermuda and Singapore. The Company's
interests are managed from Hong Kong by Jardine Matheson
Limited.
- end -
For further information, please contact:
Jardine Matheson Limited
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
David Ashton (81) 80 9713 2020
This and other Group announcements can be accessed through the
internet at www.jardines.com.
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