October 2019
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2019 Interim Results
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CORPORATE
Swire Pacific LimitedSwire Properties LimitedCathay Pacific Airways Limited



Swire Pacific's results for the first half of 2019 were solid. Recurring underlying profit grew by 40% to HK$4,226 million, demonstrating a continuation of the recovery which started last year. There was steady growth at Swire Properties. Cathay Pacific continued to benefit from its transformation programme although yield was under pressure and the geopolitical environment was challenging. HAECO’s results improved. Swire Coca-Cola did well in Mainland China. The performance of Swire Pacific Offshore remained weak.

The consolidated profit attributable to shareholders for the first half of 2019 was HK$7,939 million, a 41% decrease compared to 2018. Underlying profit attributable to shareholders, which principally adjusts for changes in the value of investment properties, increased significantly, to HK$15,846 million. The increase principally reflects a gain on disposal of the Cityplaza Three and Cityplaza Four properties of HK$11,221 million. Disregarding significant non-recurring items in both years, the recurring underlying profit for the first half of 2019 was HK$4,226 million, an increase of 40%. Dividends for the first half of 2019 increased by 13%.

The HAECO group’s attributable profit was HK$535 million for the first six months of 2019. This compares with a profit of HK$469 million on a 100% basis for the first half of 2018. The higher profit primarily reflected profit growth at HAECO Hong Kong, HAESL and the component repair businesses in Mainland China. The losses of HAECO Americas were similar to those in the first half of 2018.

The Beverages Division made an attributable profit of HK$748 million in the first half of 2019, compared with an attributable profit of HK$880 million in the first half of 2018. The 2018 figure included a non-recurring gain of HK$144 million arising from the disposal of a plant in Kaohsiung, Taiwan. Disregarding the non-recurring gain in 2018, the attributable profit was 2% higher than in the first half of 2018. There was strong profit growth in Mainland China in the first half of 2019 but the overall results of the period were adversely affected by withholding tax of HK$83 million on a dividend paid from the USA. Total revenue increased by 3%. Overall sales volume increased by 1% to 885 million unit cases. Revenue and volume grew in Mainland China and Taiwan. In the USA, revenue grew and volume decreased. In Hong Kong, revenue and volume slightly decreased.

Swire Pacific Offshore reported an attributable loss of HK$633 million for the first half of 2019, compared to a loss of HK$663 million (disregarding impairment charge and associated write-offs). There was some increase in utilisation of its fleet in the first half of 2019. This reflected more working rig activity. Average day rates remained depressed due to oversupply of vessels.

The attributable loss of the Trading & Industrial Division was HK$114 million in the first half of 2019, compared with an attributable profit of HK$154 million in the first half of 2018. Disregarding non-recurring items (write-off of the investment in an associated company and the write back of a provision in respect of the cold storage business), the attributable profit in the first half of 2019 was HK$60 million. The decrease in profit mainly reflected the net adverse effect of disposals of the Akzo Nobel and Columbia businesses (which were profit making) and the cold storage business (which was loss making). There were reduced contributions from Swire Retail, Taikoo Motors and Swire Foods.

(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 2019 Interim Results announcement.
(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 2019 Interim Results announcement.


Watch videos 
2019 Final Results Press Briefing

2019 Interim Results Press Briefing
2019 Final Results Analyst Briefing

2019 Interim Results Analyst Briefing
 

Other references 
2019 Interim Report
2019 Interim Report (PDF)
2019 Interim Results Analyst Briefing presentation
2019 Interim Results Analyst Briefing presentation (PDF)
 



Swire Properties’ consolidated profit attributable to shareholders in the first half of 2019 was HK$8,973 million, compared to HK$21,205 million in the first half of 2018. Swire Properties' underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$12,387 million from HK$6,219 million in the first half of 2018 to HK$18,606 million in the first half of 2019. Recurring underlying profit (which excludes the profit on sale of interests in investment properties) was HK$4,049 million in the first half of 2019, compared with HK$3,732 million in the first half of 2018.

The increase in underlying profit from HK$6,219 million in the first half of 2018 to HK$18,606 million in the first half of 2019 principally reflected the profit arising from the sale of interests in two office buildings Cityplaza Three and Cityplaza Four in Taikoo Shing and in other investment properties in Hong Kong.

Recurring underlying profit from property investment increased by 7% in the first half of 2019, with satisfactory growth at the Hong Kong and Mainland China portfolios. Gross rental income increased by 6% (to HK$6,346 million in the first half of 2019, compared with HK$5,996 million in the first half of 2018). This reflected positive rental reversions at the office properties in Hong Kong and Mainland China and higher retail sales in Mainland China and the USA.

Underlying profit from property trading in the first half of 2019 arose mainly from the sale of carparks at the ALASSIO development in Hong Kong and residential units in the USA.

Hotels recorded a profit in the first half of 2019 compared with a loss in the first half of 2018, principally due to improved performances at the hotels in Shanghai in Mainland China and in the USA.

Watch videos 
2019 Interim Results Press Briefing

2019 Interim Results Press Briefing
2019 Interim Results Analyst Briefing

2019 Interim Results Analyst Briefing
2019 Interim Highlight

2019 Interim Highlights
 

Other references 
2019 Interim Report
2019 Interim Report (PDF)
2019 Interim Results Analyst Briefing presentation
2019 Interim Results Analyst Briefing presentation (PDF)
 



The Cathay Pacific Group reported an attributable profit of HK$1,347 million for the first six months of 2019. This compares to an attributable loss of HK$263 million in the first half of 2018. The earnings per share in the first half of 2019 were HK34.2 cents, compared to a loss per share of HK6.7 cents in the first half of 2018. Cathay Pacific and Cathay Dragon reported an attributable profit of HK$615 million in the first half of 2019, compared to an attributable loss of HK$904 million in the first half of 2018. Passenger revenue was satisfactory, but overall yield declined. Our cargo business was weaker, due in part to US-China trade tensions, with a decline in both volume and yield. The Group benefited from lower fuel prices but were adversely impacted by a stronger US dollar.

The Group's passenger revenue increased by 5.6% to HK$37,449 million in the first half of 2019. Capacity increased by 6.7%. The growth in revenue reflected the full impact of new routes introduced in 2018, the introduction of two new routes in 2019, increased frequencies on existing routes and the use of larger aircraft on popular routes. Load factor remained unchanged at 84.2%. Passengers carried increased by 4.4% to 18.3 million. Yield decreased by 0.9% to HK54.9 cents due to intense competition in premium classes and long haul economy class, and adverse foreign currency movements.

Cargo revenue declined, reflecting weaker global trade brought about in part by US-China trade tensions. Volume and yield declined. The Group's cargo revenue in the first half of 2019 was HK$11,498 million, a decrease of 11.4% compared to the same period in 2018. Flown cargo capacity of Cathay Pacific and Cathay Dragon increased by 1.1%, principally due to additional belly cargo space in newly acquired passenger aircraft. Facing weak demand, the Group rationalised freighter capacity and emphasised shipments of specialist cargo. Load factor decreased by 4.9 percentage points, to 63.4%. Tonnage carried decreased by 5.7% to 979 thousand tonnes. Yield decreased by 2.6% to HK$1.88.

Swire Pacific Limited



Swire Pacific's results for the first half of 2019 were solid. Recurring underlying profit grew by 40% to HK$4,226 million, demonstrating a continuation of the recovery which started last year. There was steady growth at Swire Properties. Cathay Pacific continued to benefit from its transformation programme although yield was under pressure and the geopolitical environment was challenging. HAECO’s results improved. Swire Coca-Cola did well in Mainland China. The performance of Swire Pacific Offshore remained weak.

The consolidated profit attributable to shareholders for the first half of 2019 was HK$7,939 million, a 41% decrease compared to 2018. Underlying profit attributable to shareholders, which principally adjusts for changes in the value of investment properties, increased significantly, to HK$15,846 million. The increase principally reflects a gain on disposal of the Cityplaza Three and Cityplaza Four properties of HK$11,221 million. Disregarding significant non-recurring items in both years, the recurring underlying profit for the first half of 2019 was HK$4,226 million, an increase of 40%. Dividends for the first half of 2019 increased by 13%.

The HAECO group’s attributable profit was HK$535 million for the first six months of 2019. This compares with a profit of HK$469 million on a 100% basis for the first half of 2018. The higher profit primarily reflected profit growth at HAECO Hong Kong, HAESL and the component repair businesses in Mainland China. The losses of HAECO Americas were similar to those in the first half of 2018.

The Beverages Division made an attributable profit of HK$748 million in the first half of 2019, compared with an attributable profit of HK$880 million in the first half of 2018. The 2018 figure included a non-recurring gain of HK$144 million arising from the disposal of a plant in Kaohsiung, Taiwan. Disregarding the non-recurring gain in 2018, the attributable profit was 2% higher than in the first half of 2018. There was strong profit growth in Mainland China in the first half of 2019 but the overall results of the period were adversely affected by withholding tax of HK$83 million on a dividend paid from the USA. Total revenue increased by 3%. Overall sales volume increased by 1% to 885 million unit cases. Revenue and volume grew in Mainland China and Taiwan. In the USA, revenue grew and volume decreased. In Hong Kong, revenue and volume slightly decreased.

Swire Pacific Offshore reported an attributable loss of HK$633 million for the first half of 2019, compared to a loss of HK$663 million (disregarding impairment charge and associated write-offs). There was some increase in utilisation of its fleet in the first half of 2019. This reflected more working rig activity. Average day rates remained depressed due to oversupply of vessels.

The attributable loss of the Trading & Industrial Division was HK$114 million in the first half of 2019, compared with an attributable profit of HK$154 million in the first half of 2018. Disregarding non-recurring items (write-off of the investment in an associated company and the write back of a provision in respect of the cold storage business), the attributable profit in the first half of 2019 was HK$60 million. The decrease in profit mainly reflected the net adverse effect of disposals of the Akzo Nobel and Columbia businesses (which were profit making) and the cold storage business (which was loss making). There were reduced contributions from Swire Retail, Taikoo Motors and Swire Foods.

(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 2019 Interim Results announcement.
(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 2019 Interim Results announcement.


Watch videos 
2019 Final Results Press Briefing

2019 Interim Results Press Briefing
2019 Final Results Analyst Briefing

2019 Interim Results Analyst Briefing
 

Other references 
2019 Interim Report
2019 Interim Report (PDF)
2019 Interim Results Analyst Briefing presentation
2019 Interim Results Analyst Briefing presentation (PDF)
 
Swire Properties Limited



Swire Properties’ consolidated profit attributable to shareholders in the first half of 2019 was HK$8,973 million, compared to HK$21,205 million in the first half of 2018. Swire Properties' underlying profit attributable to shareholders, which principally adjusts for changes in the valuation of investment properties, increased by HK$12,387 million from HK$6,219 million in the first half of 2018 to HK$18,606 million in the first half of 2019. Recurring underlying profit (which excludes the profit on sale of interests in investment properties) was HK$4,049 million in the first half of 2019, compared with HK$3,732 million in the first half of 2018.

The increase in underlying profit from HK$6,219 million in the first half of 2018 to HK$18,606 million in the first half of 2019 principally reflected the profit arising from the sale of interests in two office buildings Cityplaza Three and Cityplaza Four in Taikoo Shing and in other investment properties in Hong Kong.

Recurring underlying profit from property investment increased by 7% in the first half of 2019, with satisfactory growth at the Hong Kong and Mainland China portfolios. Gross rental income increased by 6% (to HK$6,346 million in the first half of 2019, compared with HK$5,996 million in the first half of 2018). This reflected positive rental reversions at the office properties in Hong Kong and Mainland China and higher retail sales in Mainland China and the USA.

Underlying profit from property trading in the first half of 2019 arose mainly from the sale of carparks at the ALASSIO development in Hong Kong and residential units in the USA.

Hotels recorded a profit in the first half of 2019 compared with a loss in the first half of 2018, principally due to improved performances at the hotels in Shanghai in Mainland China and in the USA.

Watch videos 
2019 Interim Results Press Briefing

2019 Interim Results Press Briefing
2019 Interim Results Analyst Briefing

2019 Interim Results Analyst Briefing
2019 Interim Highlight

2019 Interim Highlights
 

Other references 
2019 Interim Report
2019 Interim Report (PDF)
2019 Interim Results Analyst Briefing presentation
2019 Interim Results Analyst Briefing presentation (PDF)
 
Cathay Pacific Airways Limited



The Cathay Pacific Group reported an attributable profit of HK$1,347 million for the first six months of 2019. This compares to an attributable loss of HK$263 million in the first half of 2018. The earnings per share in the first half of 2019 were HK34.2 cents, compared to a loss per share of HK6.7 cents in the first half of 2018. Cathay Pacific and Cathay Dragon reported an attributable profit of HK$615 million in the first half of 2019, compared to an attributable loss of HK$904 million in the first half of 2018. Passenger revenue was satisfactory, but overall yield declined. Our cargo business was weaker, due in part to US-China trade tensions, with a decline in both volume and yield. The Group benefited from lower fuel prices but were adversely impacted by a stronger US dollar.

The Group's passenger revenue increased by 5.6% to HK$37,449 million in the first half of 2019. Capacity increased by 6.7%. The growth in revenue reflected the full impact of new routes introduced in 2018, the introduction of two new routes in 2019, increased frequencies on existing routes and the use of larger aircraft on popular routes. Load factor remained unchanged at 84.2%. Passengers carried increased by 4.4% to 18.3 million. Yield decreased by 0.9% to HK54.9 cents due to intense competition in premium classes and long haul economy class, and adverse foreign currency movements.

Cargo revenue declined, reflecting weaker global trade brought about in part by US-China trade tensions. Volume and yield declined. The Group's cargo revenue in the first half of 2019 was HK$11,498 million, a decrease of 11.4% compared to the same period in 2018. Flown cargo capacity of Cathay Pacific and Cathay Dragon increased by 1.1%, principally due to additional belly cargo space in newly acquired passenger aircraft. Facing weak demand, the Group rationalised freighter capacity and emphasised shipments of specialist cargo. Load factor decreased by 4.9 percentage points, to 63.4%. Tonnage carried decreased by 5.7% to 979 thousand tonnes. Yield decreased by 2.6% to HK$1.88.

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.
Message from Group Chairman
Swire
Cathay Pacific senior management appointments
Cathay Pacific senior management appointments
Other senior management appointments
Senior management appointments
Board appointments
Board appointments
2019 Interim Results
2018 Interim Results
Developing young talent
Developing young talent
Thriving together
Thriving together
Swire House Green & Wellbeing Committee
Swire House Green & Wellbeing Committee
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Swire News September 2019 issue
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