| Swire Pacific | Swire Properties | Cathay Pacific Airways | HAECO |
The consolidated profit attributable to shareholders for 2017 was HK$26,070 million, a 170% increase compared to 2016. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by 55% to HK$4,742 million. Disregarding significant non-recurring items in 2017 and 2016, the 2017 adjusted underlying profit was HK$4,762 million, compared with HK$4,997 million in 2016. Better results from the Property, Beverages and Trading & Industrial Divisions were more than offset by weaker results from the Aviation and Marine Services Divisions.
Swire Beverages' profit of HK$2,441 million in 2017 included gains of HK$1,222 million arising out of the realignment of the Coca-Cola bottling system in Mainland China. These gains arose from the disposal of the Shaanxi franchise business and the remeasurement of the fair value of interests in three joint venture franchise businesses when they became subsidiary companies. There were non-recurring gains in the USA of HK$289 million. These gains arose out of the terms on which new franchise territories and production and distribution assets were acquired. Disregarding these gains, Swire Beverages made an attributable profit of HK$930 million in 2017, a 14% increase from 2016. Overall sales volume increased by 37% to 1,512 million unit cases. Sales revenue increased by 85% to HK$34,067 million. Volume and revenue grew in Mainland China and the USA, principally reflecting the inclusion of sales from additional territories. Volume and revenue increased in Hong Kong. In Taiwan, volume was in line with 2016 and revenue increased.
The Marine Services Division recorded a loss of HK$2,232 million in 2017. The loss included an impairment charge of HK$1,015 million. Disregarding impairment charges and profits and losses on disposal of vessels in both years and the loss on disposal of Altus Oil & Gas Services in 2016, the Division's loss was HK$1,201 million in 2017, compared with a loss of HK$729 million in 2016. The level of exploration and production spending by oil majors remained weak in 2017. The oversupply of offshore support vessels resulted in reduced charter hire and utilisation rates.
Attributable profit from the Trading & Industrial Division in 2017 was HK$69 million. This included a loss of HK$94 million on disposal of Swire Brands' interest in Rebecca Minkoff. Disregarding this loss, the Division's attributable profit in 2017 was HK$163 million, compared with HK$114 million in 2016. The increase principally reflected better results from Taikoo Motors and Akzo Nobel Swire Paints and a reduction in losses at Swire Environmental Services. The losses of Swire Pacific Cold Storage increased, and profits from Swire Retail and Swire Foods decreased.
2017 Final Results Press Briefing
2017 Final Results Analyst Briefing
2017 Highlights
2017 Annual Report (PDF)
2017 Final Results Analyst Briefing presentation (PDF)
Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$722 million from HK$7,112 million in 2016 to HK$7,834 million in 2017. The underlying profit from property investment increased by 12%. The underlying profit from property trading decreased slightly. Hotel losses decreased.
Gross rental income was HK$11,252 million in 2017, compared to HK$10,773 million in 2016. In Hong Kong, office rental income increased due to positive rental reversions and firm occupancy. This was despite the loss of rental income resulting from the Taikoo Place redevelopment. Retail rental income in Hong Kong was little changed in 2017. In Mainland China, gross rental income increased by 12%, mainly due to positive rental reversions and improved occupancy. In the USA, gross rental income increased following the opening of the first phase of the Brickell City Centre development in 2016.
Underlying profit from property trading in 2017 arose mainly from the handover of pre-sold units at the ALASSIO development in Hong Kong. Property sales slowed in the USA. Hotels reported reduced losses in 2017, reflecting improved results from EAST, Miami since its opening. Occupancy was stable at our managed hotels in Hong Kong and Mainland China.
2017 Final Results Press Briefing
2017 Final Results Analyst Briefing
2017 Highlights
2017 Annual Report (PDF)
2017 Final Results Analyst Briefing presentation (PDF)
The Cathay Pacific Group reported an attributable loss of HK$1,259 million for 2017. This compares to a loss of HK$575 million in 2016. The Group reported an attributable profit of HK$792 million in the second half of 2017, compared to an attributable loss of HK$2,051 million in the first half of 2017 and an attributable loss of HK$928 million in the second half of 2016.
The factors which affected the performance were largely the same as in 2016. Overcapacity in passenger markets led to intense competition with other airlines and continued pressure on yields on many of the key routes. Fuel prices were higher, but fuel hedging losses reduced. As the year progressed the Group began to see positive results from its transformation programme and business also benefited from a strong cargo business, a weaker US dollar, and improved premium class passenger demand. The contribution from subsidiary and associated companies was satisfactory.
Passenger revenue in 2017 was HK$66,408 million, a decrease of 0.8% compared to 2016. Capacity increased by 2.8%, reflecting the introduction of new routes and increased frequencies on other routes. The load factor decreased by 0.1 percentage point, to 84.4%. Yield, which was under pressure for most of the year, fell by 3.3% to HK52.3 cents, albeit improving by 3.1% in the second half of the year compared to the first half.
The Group's cargo business benefited from robust demand in 2017, with cargo revenue increasing by 19.1% to HK$23,903 million. The cargo capacity of Cathay Pacific and Cathay Dragon increased by 3.6%. The load factor increased by 3.4 percentage points, to 67.8%. Tonnage carried increased by 10.9%. Yield rose by 11.3% to HK$1.77, benefiting from the resumption (from April) of the collection of fuel surcharges in Hong Kong and from strong demand.
2017 Final Results Analyst Briefing
2017 Annual Report (PDF)
2017 Final Results Analyst Briefing presentation (PDF)
More airframe and line services work was done by the Group in Hong Kong and in Xiamen in 2017. Line services results benefited from increased aircraft movements. The increase in airframe services work reflected higher demand and the deferral of some customers' work from 2016. In America less airframe services work was done, reflecting the completion of some significant aircraft and cabin modification programmes in 2016 and the loss of significant work from a major customer from August 2017.
2017 Final Results Analyst Briefing (audiocast)
2017 Annual Report (PDF)
2017 Final Results Analyst Briefing presentation (PDF)
The consolidated profit attributable to shareholders for 2017 was HK$26,070 million, a 170% increase compared to 2016. Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by 55% to HK$4,742 million. Disregarding significant non-recurring items in 2017 and 2016, the 2017 adjusted underlying profit was HK$4,762 million, compared with HK$4,997 million in 2016. Better results from the Property, Beverages and Trading & Industrial Divisions were more than offset by weaker results from the Aviation and Marine Services Divisions.
Swire Beverages' profit of HK$2,441 million in 2017 included gains of HK$1,222 million arising out of the realignment of the Coca-Cola bottling system in Mainland China. These gains arose from the disposal of the Shaanxi franchise business and the remeasurement of the fair value of interests in three joint venture franchise businesses when they became subsidiary companies. There were non-recurring gains in the USA of HK$289 million. These gains arose out of the terms on which new franchise territories and production and distribution assets were acquired. Disregarding these gains, Swire Beverages made an attributable profit of HK$930 million in 2017, a 14% increase from 2016. Overall sales volume increased by 37% to 1,512 million unit cases. Sales revenue increased by 85% to HK$34,067 million. Volume and revenue grew in Mainland China and the USA, principally reflecting the inclusion of sales from additional territories. Volume and revenue increased in Hong Kong. In Taiwan, volume was in line with 2016 and revenue increased.
The Marine Services Division recorded a loss of HK$2,232 million in 2017. The loss included an impairment charge of HK$1,015 million. Disregarding impairment charges and profits and losses on disposal of vessels in both years and the loss on disposal of Altus Oil & Gas Services in 2016, the Division's loss was HK$1,201 million in 2017, compared with a loss of HK$729 million in 2016. The level of exploration and production spending by oil majors remained weak in 2017. The oversupply of offshore support vessels resulted in reduced charter hire and utilisation rates.
Attributable profit from the Trading & Industrial Division in 2017 was HK$69 million. This included a loss of HK$94 million on disposal of Swire Brands' interest in Rebecca Minkoff. Disregarding this loss, the Division's attributable profit in 2017 was HK$163 million, compared with HK$114 million in 2016. The increase principally reflected better results from Taikoo Motors and Akzo Nobel Swire Paints and a reduction in losses at Swire Environmental Services. The losses of Swire Pacific Cold Storage increased, and profits from Swire Retail and Swire Foods decreased.
2017 Final Results Press Briefing
2017 Final Results Analyst Briefing
2017 Highlights
2017 Annual Report (PDF)
2017 Final Results Analyst Briefing presentation (PDF)
Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$722 million from HK$7,112 million in 2016 to HK$7,834 million in 2017. The underlying profit from property investment increased by 12%. The underlying profit from property trading decreased slightly. Hotel losses decreased.
Gross rental income was HK$11,252 million in 2017, compared to HK$10,773 million in 2016. In Hong Kong, office rental income increased due to positive rental reversions and firm occupancy. This was despite the loss of rental income resulting from the Taikoo Place redevelopment. Retail rental income in Hong Kong was little changed in 2017. In Mainland China, gross rental income increased by 12%, mainly due to positive rental reversions and improved occupancy. In the USA, gross rental income increased following the opening of the first phase of the Brickell City Centre development in 2016.
Underlying profit from property trading in 2017 arose mainly from the handover of pre-sold units at the ALASSIO development in Hong Kong. Property sales slowed in the USA. Hotels reported reduced losses in 2017, reflecting improved results from EAST, Miami since its opening. Occupancy was stable at our managed hotels in Hong Kong and Mainland China.
2017 Final Results Press Briefing
2017 Final Results Analyst Briefing
2017 Highlights
2017 Annual Report (PDF)
2017 Final Results Analyst Briefing presentation (PDF)
The Cathay Pacific Group reported an attributable loss of HK$1,259 million for 2017. This compares to a loss of HK$575 million in 2016. The Group reported an attributable profit of HK$792 million in the second half of 2017, compared to an attributable loss of HK$2,051 million in the first half of 2017 and an attributable loss of HK$928 million in the second half of 2016.
The factors which affected the performance were largely the same as in 2016. Overcapacity in passenger markets led to intense competition with other airlines and continued pressure on yields on many of the key routes. Fuel prices were higher, but fuel hedging losses reduced. As the year progressed the Group began to see positive results from its transformation programme and business also benefited from a strong cargo business, a weaker US dollar, and improved premium class passenger demand. The contribution from subsidiary and associated companies was satisfactory.
Passenger revenue in 2017 was HK$66,408 million, a decrease of 0.8% compared to 2016. Capacity increased by 2.8%, reflecting the introduction of new routes and increased frequencies on other routes. The load factor decreased by 0.1 percentage point, to 84.4%. Yield, which was under pressure for most of the year, fell by 3.3% to HK52.3 cents, albeit improving by 3.1% in the second half of the year compared to the first half.
The Group's cargo business benefited from robust demand in 2017, with cargo revenue increasing by 19.1% to HK$23,903 million. The cargo capacity of Cathay Pacific and Cathay Dragon increased by 3.6%. The load factor increased by 3.4 percentage points, to 67.8%. Tonnage carried increased by 10.9%. Yield rose by 11.3% to HK$1.77, benefiting from the resumption (from April) of the collection of fuel surcharges in Hong Kong and from strong demand.
2017 Final Results Analyst Briefing
2017 Annual Report (PDF)
2017 Final Results Analyst Briefing presentation (PDF)
More airframe and line services work was done by the Group in Hong Kong and in Xiamen in 2017. Line services results benefited from increased aircraft movements. The increase in airframe services work reflected higher demand and the deferral of some customers' work from 2016. In America less airframe services work was done, reflecting the completion of some significant aircraft and cabin modification programmes in 2016 and the loss of significant work from a major customer from August 2017.
2017 Final Results Analyst Briefing (audiocast)
2017 Annual Report (PDF)
2017 Final Results Analyst Briefing presentation (PDF)
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