Swire Pacific (19) H2 2025 earnings summary

Executive summary

• Underlying profit attributable to shareholders rose 9% year-over-year to HK$11.4 billion, driven by capital recycling, strong aviation, and property divisions.

• Revenue increased 10% to HK$90.5 billion, with recurring underlying profit up 5% to HK$9.8 billion.

• Ordinary dividend per 'A' share rose 13% to HK$3.80, reflecting robust financial health and liquidity.

• Solid financial position with gearing ratio reduced to 20.6% and available liquidity of HK$52.7 billion.

• Disciplined execution of growth strategy and significant progress toward 2030 sustainability targets.

Financial highlights

• Statutory attributable profit was HK$2,938 million, down from HK$4,321 million in 2024 due to non-recurring items and fair value losses.

• Cash generated from operations increased 35% to HK$17,020 million.

• Net debt decreased 8% to HK$65.3 billion; gearing improved to 20.6%.

• Weighted average cost of debt at 3.6%, with 73% of borrowings on fixed rates.

• Swire Properties' underlying profit up 27% year-over-year, mainly from non-core asset disposals.

Outlook and guidance

• Positive outlook for core divisions in 2026, with new property developments and improving consumer sentiment in Hong Kong and Chinese Mainland.

• Aviation expected to benefit from new Xiamen facility, expanded Cathay Pacific capacity, and new aircraft deliveries, though global uncertainties remain.

• Beverage business anticipates improved conditions in Chinese Mainland and Southeast Asia, with ongoing investment in digital and route-to-market strategies.

• HAECO expects high demand for maintenance and engine services, with new Xiamen airport facility to commence operations in late 2026.