Jardine Cycle & Carriage

• Record underlying profit of US$1,096 million, 39% higher than 2021
• Improved performances from both Astra and non-Astra interests
• Proposed final dividend of US¢83 per share, total dividend of US¢111 for the year, 39% higher than 2021

JC&C’s underlying profit was 39% higher than 2021 at US$1,096 million. After accounting for non-trading items, profit attributable to shareholders was US$740 million, 12% higher than the same period last year. Non-trading items in 2022 of US$356 million comprised unrealised fair value losses of US$238 million related to non-current investments, and an impairment loss of US$114 million in respect of the investment in SCCC, necessary due to a challenging operating environment.

Astra’s contribution to the group’s underlying profit increased to a record US$913 million from US$655 million last year, with improved performances from most of its businesses, reflecting the recovery in the Indonesian economy and high commodity prices.

The underlying profit from JC&C’s Direct Motor Interests increased to US$63 million from US$39 million last year, mainly due to improved contributions from Cycle & Carriage Singapore and Malaysia, and Tunas Ridean in Indonesia. Other Strategic Interests contributed an underlying profit of US$86 million, down 4% from the previous year.

THACO

THACO contributed a profit of US$83 million, 34% up from the previous year. The profit from its automotive business continued to grow, supported by strong production levels and a temporary reduction in registration fees for locally-assembled vehicles that expired in May 2022. Its unit sales were higher and its market share increased. Margins benefitted from strong demand and an improved sales mix. The group continues to expand its investment in agriculture and, as a result, saw an increase in losses from this business as substantial pre-production losses were incurred.

Direct Motor Interests

Direct Motor Interests saw an increase of 62% in underlying profit, with better results in Singapore, Malaysia and Indonesia. Cycle & Carriage Singapore’s contribution was 13% higher, mainly due to increased profits from its premium and used car operations. New passenger car sales fell by 15% as sales volume, particularly in respect of its mass-market models, was adversely impacted by the tightened Certificate of Entitlement cycle. Market share, however, increased from 15% to 19%.

In Indonesia, Tunas Ridean’s contribution was 71% higher than the previous year, with higher profits across its automotive, financial services and leasing businesses.

Cycle & Carriage Bintang in Malaysia saw an increased profit, mainly due to improved sales volumes and margins backed by a larger order book, arising from a temporary reduction in government sales tax.

During the year, JC&C further increased its interest in Cycle & Carriage Bintang from 89.0% to 96.9%, through on-market purchases, acceptances under its Voluntary General Offer and direct purchases from the minority shareholders. Cycle & Carriage Bintang was delisted from Bursa Malaysia in September 2022.

Other Strategic Interests

The profit from JC&C’s Other Strategic Interests decreased by 4% compared with the previous year, with a significantly lower contribution from SCCC, as the business was adversely impacted by higher energy costs and inflationary pressure, as well as increased tax rates in Sri Lanka and the depreciation of the rupee, which offset improved cement volumes and prices in most of its markets.

REE’s contribution was, however, 70% higher than the previous year, mainly due to an improved performance from its renewable energy investments as a result of favourable hydrology.

The group’s investment in Vinamilk produced a slightly lower dividend income of US$37 million compared to US$39 million last year. Vinamilk reported a decrease in net profit, mainly due to higher raw material costs.