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(Alliance News) - Jardine Matheson Holdings Ltd on Thursday said it expects underlying profit for 2024 to be slightly lower than in 2023, citing current market conditions.
Jardine Matheson is a Bermuda-headquartered conglomerate with a portfolio of companies including DFI Retail Group Holdings Ltd and Hongkong Land Holdings Ltd.
The company said underlying profit in DFI Retail Group grew over 60% year-on-year in the first quarter of 2024, driven by improved performance in Food, Convenience and Health & Beauty divisions.
However, Jardine Pacific reported lower overall contribution to the first quarter amid an incurred loss by Jardine Restaurant Group and Zung Fu Hong Kong, and lower profit contribution from Jardine Schindler, JEC and Gammon.
Further, JC&C had softer trading conditions in Vietnam as THACO's automotive sales were flat amid challenging market conditions.
Hongkong Land's underlying profit was broadly in line in the first quarter year-on-year, but market sentiment for residential properties on the Chinese mainland remained weak which reduces total contracted sales. "Hongkong Land expects profits in the first half of 2024 to be significantly lower than the same period last year," Jardine noted.
For Astra, underlying earnings declined 5% on-year in the first quarter, excluding fair value adjustments from its equity investments. "The profit from Astra's heavy equipment and mining division was also lower, mainly due to lower coal prices," Jardine said.
Looking ahead, Jardine said: "Based on current market conditions, the group's full year underlying profits are expected to be modestly down against 2023. This primarily reflects the group's share of expected non-cash impairment charges in Hongkong Land's development properties business on the Chinese mainland in the first half of the year, in addition to previously anticipated first-half headwinds, including lower commodity prices at Astra."
Jardine shares were flat at USD58.38 each on Thursday afternoon in London.
By Tom Budszus, Alliance News slot editor
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