In its latest interim management statement for 3QFY2021, Jardine Cycle & Carriage announced that it has “performed well” in the third quarter, with Astra showing improvement and its direct motor interests remaining stable on a q-o-q basis. However, restrictions in Vietnam and Thailand impacted the q-o-q performance of the group’s other strategic interests.
On a 9MFY2021 basis, underlying profit recovered substantially from a year ago, reflecting improvements across all parts of the portfolio. However, by comparison with pre-pandemic levels, the group’s overall results for the first nine months of FY2021 were slightly lower than the same period in FY2019.
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For 9MFY2021, most of the group’s businesses reported sustained recovery compared to the same period a year ago.
Astra reported an 84% increase in underlying earnings. There were improved performances across Astra’s divisions, particularly in automotive where car sales benefited from the implementation of luxury sales tax incentives. Its financial services division saw higher lending volumes and lower loan loss provisions. The heavy equipment and mining division also performed strongly, with increased equipment sales and coal prices. In addition, the agribusiness division benefited from higher crude palm oil prices.
Direct Motor Interests also saw an improved performance. Cycle & Carriage in Singapore achieved higher sales volume and improved margins, particularly for its premium car segment and used car operations, which were less impacted than the mass market segment by high COE prices. Cycle & Carriage Bintang in Malaysia posted a profit due to a reduction in government sales tax and lower operating costs. Tunas Ridean in Indonesia reported higher contributions from its automotive and financial services operations.
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Other Strategic Interests performed well YTD, although the 3Q performance of some businesses was affected by lockdown measures implemented in Vietnam and Thailand. Many of THACO’s automotive showrooms were closed during this period, but gradually re-opened in October. REE’s businesses remained largely operational during the lockdown. Siam City Cement saw lower sales volumes and selling prices as construction and infrastructure activities slowed, and it was also adversely impacted by higher energy costs.
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The group’s YTD results continued to be impacted by translation losses on its foreign currency loans.
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According to the group in its statement, “While the pandemic situation will continue to create uncertainties, the group delivered a satisfactory performance and we expect this recovery to continue for the rest of the year.”
Shares in Jardine C&C closed at $22.03 on Nov 3.