May 2019
Swirenews
menu
CORPORATE
2018 Annual Results
PreviousNext
CORPORATE
Swire Pacific LimitedSwire Properties LimitedCathay Pacific Airways Limited

Swire Pacific Limited AR chart


2018 was a year of consolidation and recovery for Swire Pacific. There were improved operating results, particularly in our Aviation and Beverages divisions, and we saw solid increases in the value of our property portfolio, helped by positive rental reversions in Hong Kong and Mainland China.

Underlying profit attributable to shareholders, which principally adjusts for changes in the value of investment properties, increased by 80% to HK$8,523 million. Disregarding significant non-recurring items in both years, the 2018 recurring underlying profit was HK$7,489 million, compared with HK$4,762 million in 2017. Dividends for the full year increased by 43%.

The Beverages Division made an attributable profit of HK$1,630 million in 2018, compared to HK$2,441 million in 2017. Disregarding non-recurring items in both years, the attributable profit was HK$1,354 million in 2018, compared to HK$962 million in 2017. Revenue increased by 21% to HK$41.2 billion. Volume increased by 16% to 1,755 million unit cases. Revenue and volume grew in Mainland China and the USA mainly due to the inclusion of sales in the franchise territories acquired in 2017. Revenue and volume also grew in Hong Kong and Taiwan.

Swire Pacific Offshore recorded an attributable loss of HK$5,070 million in 2018, compared to a loss of HK$2,255 million in 2017. The losses included impairment charges and related write-offs of HK$3,911 million in 2018 and HK$1,015 million in 2017. Disregarding these non-recurring items, the attributable loss was HK$1,122 million in 2018, compared to HK$1,217 million in 2017. Offshore industry conditions remained difficult. Despite some improvement in vessel utilisation rates, the oversupply of offshore support vessels continued to put pressure on charter hire rates.

The attributable profit of the Trading & Industrial Division was HK$2,904 million, compared to HK$69 million in 2017. Disregarding non-recurring items in both years, the attributable profits were HK$164 million in 2018, compared to HK$163 million in 2017. The results principally reflected a reduced contribution from Akzo Nobel Swire Paints and losses from Swire Foods, largely offset by better results from Swire Retail and Taikoo Motors, and the absence of a loss from the cold storage business (following its disposal) in the second half of 2018.

(Left to right) Swire Properties Chief Executive, Guy Bradley, Swire Pacific Chairman, Merlin Swire and Swire Pacific Finance Director, Michelle Low at the Swire Pacific 2018 Final Results announcement.
(Left to right) Swire Coca-Cola Managing Director, Pat Healy, Swire Pacific Chairman, Merlin Swire and Swire Pacific Finance Director, Michelle Low at the Swire Pacific 2018 Final Results announcement.


Watch videos 
2018 Final Results Press Briefing

2018 Final Results Press Briefing
2018 Final Results Analyst Briefing

2018 Final Results Analyst Briefing
2018 Highlights

2018 Highlights
 

Other references 
2018 Annual Report
2018 Annual Report (PDF)
2018 Final Results Analyst Briefing presentation
2018 Final Results Analyst Briefing presentation (PDF)
 

Swire Properties Limited AR chart


Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by 30% to HK$10,148 million in 2018. The increase principally reflected the profit arising from the sale of a subsidiary which owned an office building in Kowloon Bay and of our interests in other investment properties in Hong Kong. This was partly offset by a decrease in profit from property trading.

Recurring underlying profit (which excludes the profit on sale of interests in investment properties) was HK$7,521 million in 2018, compared with HK$7,813 million in 2017. The decrease principally reflected a decrease in profit from property trading. Recurring underlying profit from property investment increased by 11%. Hotel losses decreased.

Gross rental income was HK$12,117 million in 2018, compared to HK$11,252 million in 2017. In Hong Kong, office rental income increased due to positive rental reversions, firm occupancy and the opening of One Taikoo Place in the last quarter of 2018. Retail rental income in Hong Kong improved in 2018. In Mainland China, gross rental income increased by 12%, mainly due to positive rental reversions and improved occupancy. In the USA, gross rental income almost doubled, mainly because more shops were open at the shopping centre at Brickell City Centre.

Underlying profit from property trading in 2018 arose mainly from the sale of houses at the WHITESANDS development and carparks at the AZURA development in Hong Kong, and from the share of profit from the sale of offices and carparks at Sino-Ocean Taikoo Li Chengdu in Mainland China.

The performance of the hotels continued to improve in 2018, with those in Hong Kong and in the USA doing better. This was offset in part by pre-opening costs at hotels in Shanghai in Mainland China.

(Left to right) Swire Properties Finance Director, Fanny Lung and Swire Properties Chief Executive, Guy Bradley speaking at Swire Properties 2018 Final Results Analyst Briefing.
(Left to right) Swire Properties Finance Director, Fanny Lung and Swire Properties Chief Executive, Guy Bradley speaking at Swire Properties 2018 Final Results Analyst Briefing.


Watch videos 
2018 Final Results Press Briefing

2018 Final Results Press Briefing
2018 Final Results Analyst Briefing

2018 Final Results Analyst Briefing
2018 Highlights

2018 Highlights
 

Other references 
2018 Annual Report
2018 Annual Report (PDF)
2018 Final Results Analyst Briefing presentation
2018 Final Results Analyst Briefing presentation (PDF)

Cathay Pacific Airways Limited AR chart


The Cathay Pacific Group reported an attributable profit of HK$2,345 million for 2018. This compares to a loss of HK$1,259 million for 2017. The profit per share was HK59.6 cents in 2018 compared to a loss per share of HK32.0 cents in 2017. The Group reported an attributable profit of HK$2,608 million in the second half of 2018, compared to an attributable loss of HK$263 million in the first half of 2018 and an attributable profit of HK$792 million in the second half of 2017. Cathay Pacific and Cathay Dragon reported an attributable profit of HK$1,145 million in the second half of 2018, compared to an attributable loss of HK$904 million in the first half of 2018 and an attributable loss of HK$1,538 million in the second half of 2017.

Overcapacity in passenger markets resulted in intense competition with other airlines, particularly those from Mainland China. This put pressure on market yields on key routes particularly in the second half of the year. But the passenger business benefited from capacity growth, a focus on customer service and improved revenue management. Load factors were sustained and yield improved despite competitive pressures. The cargo business was strong. Capacity, yield and load factors increased.

Fuel prices increased for 10 months, before falling somewhat in the last two months of the year. The strength of the US dollar adversely affected net income in the latter half of the year.

Passenger revenue in 2018 was HK$73,119 million, an increase of 10.1% compared to 2017. Capacity increased by 3.5%, reflecting the introduction of new routes and increased frequencies on existing routes. The load factor decreased by 0.3 percentage points, to 84.1%. Yield increased by 6.7% to HK55.8 cents, reflecting improved premium class passenger demand, fuel surcharges and revenue management initiatives.

The cargo business benefited from robust demand in 2018. Group revenue increased by 18.5% to HK$28,316 million. Capacity for Cathay Pacific and Cathay Dragon increased by 2.6%. The load factor increased by 1.0 percentage point to 68.8%. Tonnage carried increased by 4.7%. Yield rose by 14.7% to HK$2.03, reflecting an increase in high-value specialist cargo shipments and higher fuel surcharges.

Senior Management Team of Cathay Pacific at the Cathay Pacific Group 2018 Annual Results announcement: (left to right) Chief Financial Officer, Martin Murray, Chief Executive Officer, Rupert Hogg, Chairman, John Slosar, Chief Customer and Commercial Officer, Paul Loo and Chief Operations and Service Delivery Officer, Greg Hughes.
Senior management team of Cathay Pacific at the Cathay Pacific Group 2018 Annual Results announcement: (left to right) Chief Financial Officer, Martin Murray, Chief Executive Officer, Rupert Hogg, Chairman, John Slosar, Chief Customer and Commercial Officer, Paul Loo and Chief Operations and Service Delivery Officer, Greg Hughes.


Watch videos 
2018 Final Results Analyst Briefing

2018 Final Results Analyst Briefing
 

Other references 
2018 Annual Report
2018 Annual Report (PDF)
2018 Final Results Analyst Briefing presentation
2018 Final Results Analyst Briefing presentation (PDF)
Swire Pacific Limited

Swire Pacific Limited AR chart


2018 was a year of consolidation and recovery for Swire Pacific. There were improved operating results, particularly in our Aviation and Beverages divisions, and we saw solid increases in the value of our property portfolio, helped by positive rental reversions in Hong Kong and Mainland China.

Underlying profit attributable to shareholders, which principally adjusts for changes in the value of investment properties, increased by 80% to HK$8,523 million. Disregarding significant non-recurring items in both years, the 2018 recurring underlying profit was HK$7,489 million, compared with HK$4,762 million in 2017. Dividends for the full year increased by 43%.

The Beverages Division made an attributable profit of HK$1,630 million in 2018, compared to HK$2,441 million in 2017. Disregarding non-recurring items in both years, the attributable profit was HK$1,354 million in 2018, compared to HK$962 million in 2017. Revenue increased by 21% to HK$41.2 billion. Volume increased by 16% to 1,755 million unit cases. Revenue and volume grew in Mainland China and the USA mainly due to the inclusion of sales in the franchise territories acquired in 2017. Revenue and volume also grew in Hong Kong and Taiwan.

Swire Pacific Offshore recorded an attributable loss of HK$5,070 million in 2018, compared to a loss of HK$2,255 million in 2017. The losses included impairment charges and related write-offs of HK$3,911 million in 2018 and HK$1,015 million in 2017. Disregarding these non-recurring items, the attributable loss was HK$1,122 million in 2018, compared to HK$1,217 million in 2017. Offshore industry conditions remained difficult. Despite some improvement in vessel utilisation rates, the oversupply of offshore support vessels continued to put pressure on charter hire rates.

The attributable profit of the Trading & Industrial Division was HK$2,904 million, compared to HK$69 million in 2017. Disregarding non-recurring items in both years, the attributable profits were HK$164 million in 2018, compared to HK$163 million in 2017. The results principally reflected a reduced contribution from Akzo Nobel Swire Paints and losses from Swire Foods, largely offset by better results from Swire Retail and Taikoo Motors, and the absence of a loss from the cold storage business (following its disposal) in the second half of 2018.

(Left to right) Swire Properties Chief Executive, Guy Bradley, Swire Pacific Chairman, Merlin Swire and Swire Pacific Finance Director, Michelle Low at the Swire Pacific 2018 Final Results announcement.
(Left to right) Swire Coca-Cola Managing Director, Pat Healy, Swire Pacific Chairman, Merlin Swire and Swire Pacific Finance Director, Michelle Low at the Swire Pacific 2018 Final Results announcement.


Watch videos 
2018 Final Results Press Briefing

2018 Final Results Press Briefing
2018 Final Results Analyst Briefing

2018 Final Results Analyst Briefing
2018 Highlights

2018 Highlights
 

Other references 
2018 Annual Report
2018 Annual Report (PDF)
2018 Final Results Analyst Briefing presentation
2018 Final Results Analyst Briefing presentation (PDF)
 
Swire Properties Limited

Swire Properties Limited AR chart


Underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by 30% to HK$10,148 million in 2018. The increase principally reflected the profit arising from the sale of a subsidiary which owned an office building in Kowloon Bay and of our interests in other investment properties in Hong Kong. This was partly offset by a decrease in profit from property trading.

Recurring underlying profit (which excludes the profit on sale of interests in investment properties) was HK$7,521 million in 2018, compared with HK$7,813 million in 2017. The decrease principally reflected a decrease in profit from property trading. Recurring underlying profit from property investment increased by 11%. Hotel losses decreased.

Gross rental income was HK$12,117 million in 2018, compared to HK$11,252 million in 2017. In Hong Kong, office rental income increased due to positive rental reversions, firm occupancy and the opening of One Taikoo Place in the last quarter of 2018. Retail rental income in Hong Kong improved in 2018. In Mainland China, gross rental income increased by 12%, mainly due to positive rental reversions and improved occupancy. In the USA, gross rental income almost doubled, mainly because more shops were open at the shopping centre at Brickell City Centre.

Underlying profit from property trading in 2018 arose mainly from the sale of houses at the WHITESANDS development and carparks at the AZURA development in Hong Kong, and from the share of profit from the sale of offices and carparks at Sino-Ocean Taikoo Li Chengdu in Mainland China.

The performance of the hotels continued to improve in 2018, with those in Hong Kong and in the USA doing better. This was offset in part by pre-opening costs at hotels in Shanghai in Mainland China.

(Left to right) Swire Properties Finance Director, Fanny Lung and Swire Properties Chief Executive, Guy Bradley speaking at Swire Properties 2018 Final Results Analyst Briefing.
(Left to right) Swire Properties Finance Director, Fanny Lung and Swire Properties Chief Executive, Guy Bradley speaking at Swire Properties 2018 Final Results Analyst Briefing.


Watch videos 
2018 Final Results Press Briefing

2018 Final Results Press Briefing
2018 Final Results Analyst Briefing

2018 Final Results Analyst Briefing
2018 Highlights

2018 Highlights
 

Other references 
2018 Annual Report
2018 Annual Report (PDF)
2018 Final Results Analyst Briefing presentation
2018 Final Results Analyst Briefing presentation (PDF)
Cathay Pacific Airways Limited

Cathay Pacific Airways Limited AR chart


The Cathay Pacific Group reported an attributable profit of HK$2,345 million for 2018. This compares to a loss of HK$1,259 million for 2017. The profit per share was HK59.6 cents in 2018 compared to a loss per share of HK32.0 cents in 2017. The Group reported an attributable profit of HK$2,608 million in the second half of 2018, compared to an attributable loss of HK$263 million in the first half of 2018 and an attributable profit of HK$792 million in the second half of 2017. Cathay Pacific and Cathay Dragon reported an attributable profit of HK$1,145 million in the second half of 2018, compared to an attributable loss of HK$904 million in the first half of 2018 and an attributable loss of HK$1,538 million in the second half of 2017.

Overcapacity in passenger markets resulted in intense competition with other airlines, particularly those from Mainland China. This put pressure on market yields on key routes particularly in the second half of the year. But the passenger business benefited from capacity growth, a focus on customer service and improved revenue management. Load factors were sustained and yield improved despite competitive pressures. The cargo business was strong. Capacity, yield and load factors increased.

Fuel prices increased for 10 months, before falling somewhat in the last two months of the year. The strength of the US dollar adversely affected net income in the latter half of the year.

Passenger revenue in 2018 was HK$73,119 million, an increase of 10.1% compared to 2017. Capacity increased by 3.5%, reflecting the introduction of new routes and increased frequencies on existing routes. The load factor decreased by 0.3 percentage points, to 84.1%. Yield increased by 6.7% to HK55.8 cents, reflecting improved premium class passenger demand, fuel surcharges and revenue management initiatives.

The cargo business benefited from robust demand in 2018. Group revenue increased by 18.5% to HK$28,316 million. Capacity for Cathay Pacific and Cathay Dragon increased by 2.6%. The load factor increased by 1.0 percentage point to 68.8%. Tonnage carried increased by 4.7%. Yield rose by 14.7% to HK$2.03, reflecting an increase in high-value specialist cargo shipments and higher fuel surcharges.

Senior Management Team of Cathay Pacific at the Cathay Pacific Group 2018 Annual Results announcement: (left to right) Chief Financial Officer, Martin Murray, Chief Executive Officer, Rupert Hogg, Chairman, John Slosar, Chief Customer and Commercial Officer, Paul Loo and Chief Operations and Service Delivery Officer, Greg Hughes.
Senior management team of Cathay Pacific at the Cathay Pacific Group 2018 Annual Results announcement: (left to right) Chief Financial Officer, Martin Murray, Chief Executive Officer, Rupert Hogg, Chairman, John Slosar, Chief Customer and Commercial Officer, Paul Loo and Chief Operations and Service Delivery Officer, Greg Hughes.


Watch videos 
2018 Final Results Analyst Briefing

2018 Final Results Analyst Briefing
 

Other references 
2018 Annual Report
2018 Annual Report (PDF)
2018 Final Results Analyst Briefing presentation
2018 Final Results Analyst Briefing presentation (PDF)
The non-statutory accounts (within the meaning of section 436 of the Companies Ordinance (Cap. 622) (the "Ordinance")) in this document are not specified financial statements (within such meaning). The specified financial statements for the year ended 31st December 2017 have been delivered to the Registrar of Companies in Hong Kong in accordance with section 664 of the Ordinance. The specified financial statements for the year ended 31st December 2018 have not been but will be delivered to the Registrar of Companies in Hong Kong in accordance with section 664 of the Ordinance. Auditor’s reports have been prepared on the specified financial statements for the years ended 31st December 2017 and 2018. Those reports were not qualified or otherwise modified, did not refer to any matters to which the auditor drew attention by way of emphasis without qualifying the reports and did not contain statements under section 406(2) or 407(2) or (3) of the Ordinance.

This document may contain certain forward-looking statements that reflect the Company's beliefs, plans or expectations about the future or future events. These forward-looking statements are based on a number of assumptions, current estimates and projections, and are therefore subject to inherent risks, uncertainties and other factors beyond the Company’s control. The actual results or outcomes of events may differ materially and/or adversely due to a number of factors, including changes in the economies and industries in which the Group operates (in particular in Hong Kong and Mainland China), macro-economic and geopolitical uncertainties, changes in the competitive environment, foreign exchange rates, interest rates and commodity prices, and the Group's ability to identify and manage risks to which it is subject. Nothing contained in these forward-looking statements is, or shall be, relied upon as any assurance or representation as to the future or as a representation or warranty otherwise. Neither the Company nor its directors, officers, employees, agents, affiliates, advisers or representatives assume any responsibility to update these forward-looking statements or to adapt them to future events or developments or to provide supplemental information in relation thereto or to correct any inaccuracies.
China Development Forum
China Development Forum
Meetings with senior Mainland officials
Meetings with senior Mainland officials
Senior management appointment
Senior management appointment
Grooming future leaders
Grooming future leaders
Wuhan visit
Wuhan visit
Creating a new benchmark for diversity and inclusion
Creating a new benchmark for diversity and inclusion
2018 Annual Results
2018 Annual Results
PROPERTY
AVIATION
BEVERAGES & FOOD CHAIN
MARINE SERVICES
TRADING & INDUSTRIAL
IN THE COMMUNITY
AWARDS & RECOGNITIONS
Swire News May 2019 nissue
Download this issue in PDF
Top