Watch the Swire Pacific Annual Results 2023 highlight video.
Swire Pacific’s consolidated profit attributable to shareholders was HK$28,853 million, compared with HK$4,195 million in 2022. The underlying profit attributable to shareholders for the year, adjusted for changes in the value of investment properties, was HK$36,177 million compared with HK$4,748 million in 2022. Disregarding changes in the value of investment properties and significant non-recurring items in both years, the Group recorded a recurring underlying profit of HK$10,449 million in 2023 compared with HK$3,800 million in 2022.
The year saw a significant turnaround from the Aviation Division, driven by the strong post-COVID demand for travel. The growing momentum of the post-COVID recovery also benefitted the Property Division’s retail and hotel businesses. The Group’s core businesses remained solid despite the difficult economic environment and ongoing geopolitical tensions in the second half of the year.
The record underlying profit of HK$36.2 billion was also driven by some very large non-recurring items during the year. In particular, these included the HK$22.9 billion gain from the sale of the Swire Coca-Cola, USA business in September 2023 and the significant gains arising from Swire Properties entering into agreements to sell 12 floors at One Island East for a total consideration of HK$5.4 billion (the sale of nine floors with an attributable underlying disposal gain of HK$2.7 billion was recognised in 2023). These gains were partially offset by impairments at HAESL and DeltaHealth, a loss on the disposal of HAECO’s cabin solutions business, and a provision for New Life Plastics.
Commenting on the Group’s performance in 2023, Guy Bradley, Chairman of Swire Pacific, said, “We are delighted with this excellent performance after the pandemic, especially the record underlying profit. These outstanding results also mean we are able to enhance returns to our shareholders through both ordinary and special dividends, as well as our share buy-back programmes.”
On the Group’s prospects in 2024, Guy said, “While undoubtedly headwinds remain, we are in a healthy position to continue investing in our core markets for the long term. We remain focused on achieving more value for shareholders in 2024.”
Swire Pacific Annual 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.
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Other reference
2023 Annual Report (PDF)
2023 Annual Results Analyst Briefing presentation
Watch the Swire Properties Annual Results 2023 highlight video.
Swire Properties reported that underlying profit attributable to shareholders increased by HK$2,864 million, from HK$8,706 million in 2022 to HK$11,570 million in 2023, primarily reflecting the gain on disposal of nine floors of One Island East in Hong Kong. Recurring underlying profit increased by HK$109 million, from HK$7,176 million in 2022 to HK$7,285 million in 2023, which principally reflected the strong recovery of Swire Properties’ retail portfolio and hotels in Hong Kong and the Chinese Mainland.
Swire Properties’ retail portfolio in Hong Kong saw a strong rebound, due to an improvement in consumer sentiment and the lifting of all travel restrictions and pandemic-related control measures. Investments in marketing and loyalty initiatives, together with digitally-advanced campaigns to interact with customers, all contributed to a significant business recovery in 2023. Sales have improved and returned to pre-pandemic levels in most of the malls.
The office sector in Hong Kong remains weak, given increased availability (due to vacancy and new supply), and demand for office space remains subdued, reflecting continued economic uncertainty and the high interest rate environment. However, the office portfolio has remained resilient with solid occupancy, and leasing activity has picked up since the reopening of the borders, with increased requests for viewings.
In the Chinese Mainland, foot traffic has improved significantly and retail sales have exceeded pre-pandemic levels for most of Swire Properties’ malls since pandemic-related restrictions were lifted. The office portfolio has proven to be resilient despite a weak office market. A small underlying loss from Swire Properties’ property trading activities in 2023 was recorded as a result of sales and marketing expenses incurred for several residential trading projects. Swire Properties’ hotel business in Hong Kong and the Chinese Mainland recovered strongly following the lifting of travel restrictions and the reopening of the borders.
Swire Properties Annual Results Analyst Briefing: Swire Properties’ Chief Executive, Tim Blackburn and Finance Director, Fanny Lung.
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Other reference
2023 Annual Report (PDF)
2023 Annual Results Analyst Briefing presentation
2023 was Cathay’s first profitable year since 2019, and was characterised by a notable surge in travel demand following three years of pandemic-related restrictions. Cathay achieved its end-2023 group target of operating 70% of pre-pandemic passenger flights, connecting Hong Kong with around 80 destinations around the world. The imbalance between supply and demand resulted in high yields and contributed to a strong financial performance in both halves of the year.
The Cathay group, including airlines, subsidiaries and associates, reported an attributable profit of HK$9,789 million in 2023, compared with 2022’s restated loss of HK$6,623 million. The earnings per ordinary share in 2023 were HK140.8 cents, compared with a restated loss per ordinary share of HK112.4 cents in 2022.
The Cathay group’s airlines and subsidiaries performed strongly across both halves, reporting an attributable profit of HK$9,225 million for the full year of 2023, compared with 2022’s restated loss of HK$330 million. The results from associates, the majority of which are recognised three months in arrears, were a full-year loss of HK$1,562 million, compared with a loss of HK$6,293 million in 2022.
The attributable profit for 2023 included an exceptional non-recurring non-cash gain of HK$1.9 billion as a result of a dilution of the Cathay group’s interest in Air China following the completion of their A-shares offering in January 2023.
The Cathay group was operating cash generative overall in 2023 and, as at 31st December 2023, available unrestricted liquidity balance amounted to HK$20 billion. During the pandemic, the Cathay group maintained elevated liquidity levels as a precautionary measure to navigate the uncertainties.
Cathay Pacific Annual Results Analyst Briefing: Cathay Pacific’s Chief Executive Officer, Ronald Lam, and Chief Financial Officer, Rebecca Sharpe.
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2023 Annual Results Analyst Briefing
Other reference
2023 Annual Report (PDF)
2023 Annual Results Analyst Briefing presentation
