SWIRE PACIFIC A(00019)2023-09-05 08:30Financial Performance - The company's profit attributable to shareholders reached HKD 4,221 million, a 121% increase from HKD 1,914 million in the previous year[5]. - Basic earnings increased to HKD 5,594 million, up 219% from HKD 1,752 million year-on-year[5]. - Revenue for the period was HKD 51,544 million, reflecting a 15% growth compared to HKD 44,808 million in the same period last year[5]. - The operating profit was HKD 5,079 million, a decrease of 25% from HKD 6,794 million in the previous year[5]. - The group recorded a profit of HKD 63 million for the first half of 2023, compared to a profit of HKD 166 million in the same period of 2022, reflecting a decrease due to losses in certain associated businesses[8]. - The attributable profit for the company was HKD 2,222 million, down from HKD 4,347 million year-on-year[14]. - The company reported a profit of HKD 4,867 million for the six months ended June 30, 2023, compared to HKD 3,029 million for the same period in 2022, representing a year-over-year increase of 61%[92]. Debt and Equity - The net debt amounted to HKD 66,915 million, a 52% increase from HKD 43,911 million year-on-year[5]. - The capital net debt ratio (excluding lease liabilities) was 21.4%, an increase of 7.7 percentage points from 13.7%[5]. - Total equity, including non-controlling interests, stood at HKD 312,933 million, down 3% from HKD 321,421 million[5]. - The net debt-to-equity ratio as of June 30, 2023, was 21.4%, with available liquidity of HKD 35.9 billion, expected to improve further following the sale of the US bottling business[8]. - The total borrowings and bonds as of June 30, 2023, stood at HKD 80,355 million, up from HKD 68,373 million at the end of 2022[77]. - The net debt-to-equity ratio as of June 30, 2023, increased to 28.7% from 27.6% as of December 31, 2022[84]. Dividends - The company declared an interim dividend of HKD 1.20 per 'A' share, a 4% increase from HKD 1.15 in the previous year[5]. - The group plans to distribute a special dividend of HKD 8.120 per 'A' share and HKD 1.624 per 'B' share, representing a 4% increase from the first interim dividend in 2022[8]. - The first interim dividend for the year ending December 31, 2023, is announced at HKD 1.20 per 'A' share and HKD 0.24 per 'B' share, totaling HKD 1.73 billion, compared to HKD 1.72 billion in 2022[120]. Segment Performance - The beverage segment recorded a recurring profit of HKD 1.627 billion, up 41% from HKD 1.152 billion in the first half of 2022, with total revenue increasing by 14% to HKD 30.42 billion[7]. - The property segment's attributable recurring profit for the first half of 2023 was HKD 3.188 billion, a 6% increase from HKD 2.994 billion in the same period of 2022[7]. - The airline segment, specifically Cathay Group, reported an operating profit of HKD 1,921 million[96]. - The beverage segment in mainland China reported revenue of HKD 13,202 million, contributing an operating profit of HKD 823 million[96]. Cash Flow and Investments - The net cash outflow before financing was HKD 3,493 million, a significant increase from HKD 2,243 million in the previous year[5]. - The group generated cash from operations amounting to HKD 7,206 million, an increase from HKD 6,147 million in the same period last year[76]. - The company reported a net cash inflow of HKD 633 million for the six months ended June 30, 2023, compared to a net outflow of HKD 9,165 million in the same period of the previous year[76]. - The company has committed approximately HKD 390 billion for planned investments, with HKD 170 billion allocated to mainland China and HKD 110 billion each for Hong Kong and residential projects[18]. Market Outlook and Strategy - The group expects stable demand for base maintenance and an increase in demand for line maintenance and engine overhaul services in the second half of 2023[10]. - The group continues to focus on long-term investment strategies despite economic uncertainties, driven by the recovery of Cathay Pacific's business[9]. - The company plans to continue expanding its market presence and investing in new technologies and products[96]. - The group anticipates moderate growth in sales in Hong Kong due to increased inbound tourism and improved local consumption demand[45]. Operational Metrics - The passenger load factor improved to 87.2%, up by 28 percentage points from 59.2% in the previous year[49]. - Available tonne-kilometers increased by 211.2% to 9,628 million, while available seat-kilometers surged by 1,111.3% to 37,053 million[49]. - The total sold hours for base maintenance services in the first half of 2023 reached 202,000 hours, a 13% increase compared to the same period in 2022[59]. Challenges and Risks - The company expects raw material prices and operating expenses to continue rising, impacting profitability negatively[45]. - The airline segment recorded a loss of HKD 2,250 million, reflecting ongoing challenges in the aviation industry[97]. - Cathay Pacific is facing antitrust lawsuits in various jurisdictions, with potential liabilities still under assessment, including a fine of EUR 57.12 million imposed by the European Commission[154].