Watch the Swire Pacific Interim Results 2023 highlight video.
The Group's core divisions have all rebounded in the first six months of this year. The main driver of these strong results is the Aviation Division. Cathay Pacific continues to build on the positive momentum and improved financial performance reported since the second half of 2022, and has benefitted from a surge in travel demand since pandemic control measures were lifted. The Property Division has welcomed an increase in rental income from retail properties in the Chinese Mainland and Hong Kong, and the increased demand in international travel has, in turn, led to an improvement in the hotel business. In the Beverages Division, the business in the USA has continued to perform well, and the results for the period include its latest acquisitions in Vietnam and Cambodia.
In the first six months of 2023, Swire Pacific's consolidated profit attributable to shareholders was HK$4,221 million. This is compared with HK$1,914 million for the same period in 2022. The underlying profit attributable to shareholders, adjusted for changes in the value of investment properties, was HK$5,594 million in comparison to HK$1,752 million posted for the first half of last year. Disregarding changes in investment property value and significant non-recurring items in both years, the Group recorded a recurring underlying profit of HK$4,879 million for the period under review, compared with HK$1,272 million for the corresponding period in 2022.
The Group also improved its shareholder returns with its share buy-back scheme of up to HK$4 billion, which was announced in 2022 and completed earlier this year. During the period under review, Swire Pacific repurchased 8,998,500 'A' shares and 15,107,500 'B' shares for an aggregate cash consideration of HK$0.7 billion at average prices of HK$59.1 per 'A' share and HK$9.7 per 'B' share. The Board will continue to evaluate all options, including future share buy-back schemes, taking into consideration the most efficient use of capital for long-term shareholder returns.
Swire Pacific Interim Results Analyst Briefing (left to right): Karen So, Managing Director of Swire Coca-Cola, Swire Pacific's Chairman, Guy Bradley and Finance Director, Martin Murray.
Watch the analyst briefing
Other references
2023 Interim Report (PDF)
2023 Interim Results Analyst Briefing presentation
Watch the Swire Properties Interim Results 2023 highlight video.
Swire Properties' recurring underlying profit increased by HK$220 million to HK$3,892 million in the first half of 2023, which mainly reflected the strong recovery of its retail portfolio and hotels in Hong Kong and the Chinese Mainland. Underlying profit attributable to shareholders decreased by HK$268 million to HK$3,901 million in the first half of 2023, primarily due to the delay in sales of car parking spaces at Taikoo Shing residential development in Hong Kong.
The company saw a strong rebound in its retail business in both Hong Kong and the Chinese Mainland. The Hong Kong retail portfolio has recovered very well, due to the lifting of all travel restrictions and COVID-19 related measures, and an improvement in consumer sentiment. Sales have improved and returned to pre-pandemic levels in some of the company's malls in Hong Kong. In the Chinese Mainland, foot traffic has improved significantly and retail sales have exceeded pre-pandemic levels for many of its malls.
The company's hotel business in Hong Kong and the Chinese Mainland recovered strongly following the lifting of COVID-19 restrictions and the reopening of the border.
Swire Properties has made good progress with its HK$100 billion investment plan, which was first announced in March 2022. The company is focused on building out its pipeline of new projects across its core markets of Hong Kong, the Chinese Mainland and South East Asia, with approximately 40% of the plan now committed to new investments.
Swire Properties Interim Results Analyst Briefing: Swire Properties' Chief Executive, Tim Blackburn and Finance Director, Fanny Lung.
Watch the analyst briefing
Other references
2023 Interim Report (PDF)
2023 Interim Results Analyst Briefing presentation
The Cathay group, including airlines, subsidiaries and associates, reported an attributable profit of HK$4,268 million in the first half of 2023 (2022 first half: loss of HK$4,999 million). The profit included a one-off non-cash gain of HK$1.9 billion. The group’s airlines and subsidiaries, excluding exceptional items, reported an attributable profit of HK$4,763 million in the first half of 2023 (2022 first half: loss of HK$2,516 million). Meanwhile, the results from associates, the majority of which are recognised three months in arrears, reflected an attributable loss of HK$2,632 million (2022 first half: loss of HK$2,483 million).
In the first half of 2023, Cathay Pacific’s passenger revenue increased by 1,109.5% to HK$25,013 million compared with the same period in 2022. Passenger flight capacity, measured in available seat kilometres, increased by 1,111.3%, while traffic, measured in revenue passenger kilometres, increased by 1,685.0%. The airline carried a total of 7.8 million passengers in the first half of 2023, an average of 43,184 per day, which was 2,233.1% more than in the first half of 2022. Load factor was 87.2% compared with 59.2% in the first half of 2022.
Cargo revenue in the first half of 2023 decreased by 11.6% to HK$10,741 million compared with the same period in 2022, reflecting a weaker global market for air cargo. Capacity, measured in available cargo tonne kilometres, increased by 117.6%. Traffic, measured in cargo revenue tonne kilometres, increased by 83.0%. Total tonnage increased by 23.8% to 651 thousand tonnes. Load factor was 63.8% compared with 75.8% in the first half of 2022, and yield decreased by 51.7% to HK$2.76.
Cathay group has been operating cash generative so far in 2023 and its available unrestricted liquidity balance was HK$28.9 billion as at 30th June 2023.
Cathay Pacific Interim Results Analyst Briefing (left to right): Cathay Pacific's Chief Customer and Commercial Officer, Lavinia Lau, and Chief Financial Officer, Rebecca Sharpe.
Watch the analyst briefing
Other references
2023 Interim Report (PDF)
2023 Interim Results Analyst Briefing presentation
