Swire Pacific (19) investor relations material

Executive summary

• Underlying profit attributable to shareholders was HK$5,476M, down 2% year-over-year; recurring underlying profit was HK$4,712M, down 1%.

• Reported profit fell sharply to HK$815M from HK$3,914M due to higher non-cash fair value losses on investment properties.

• Revenue rose 16% year-over-year to HK$45,774M, with strong cash generation and a robust balance sheet.

• Divestment of Brickell City Centre assets in Miami contributed to underlying profit; share buy-back programme completed, repurchasing HK$5.9B in shares.

• Interim dividend per 'A' share increased 4% to HK$1.30.

Financial highlights

• Revenue: HK$45,774M (+16% YoY); operating profit: HK$1,861M (-62% YoY); net cash from operations: HK$8,438M (+59% YoY).

• Underlying profit: HK$5,476M (-2% YoY); recurring underlying profit: HK$4,712M (-1% YoY).

• Gearing ratio: 22.7% (excl. leases), net debt: HK$71,337M (+12% YoY), available liquidity: HK$52.6B.

• Weighted average cost of debt: 3.7%; 66% of borrowings at fixed rates.

• Basic EPS: HK$0.60 ('A' share), HK$0.12 ('B' share); equity per 'A' share: HK$191.20.

Outlook and guidance

• Office market in Hong Kong expected to remain subdued; premium office demand resilient, while Chinese Mainland retail market to gradually improve with better consumer sentiment.

• Beverages: Chinese Mainland faces subdued spending; moderate growth in Vietnam; challenges in Cambodia and Thailand due to economic conditions and sugar tax.

• Aviation: Robust travel demand; Cathay group to expand fleet and destinations; cargo market remains uncertain.

• HAECO expects stable base maintenance demand; relocation to new Xiamen airport underway.

• Uncertainty persists in core markets, but signs of economic improvement are emerging.