SWIRE PACIFIC A(00019)2023-08-10 04:00Financial Performance - The company's profit attributable to shareholders increased by 121% to HKD 4,221 million compared to HKD 1,914 million in the previous year[6]. - Basic earnings rose by 219% to HKD 5,594 million from HKD 1,752 million year-on-year[6]. - Revenue for the period reached HKD 51,544 million, reflecting a 15% increase from HKD 44,808 million in the previous year[6]. - Operating profit decreased by 25% to HKD 5,079 million, down from HKD 6,794 million in the previous year[6]. - The total equity, including non-controlling interests, decreased by 3% to HKD 312,933 million from HKD 321,421 million[6]. - The attributable consolidated profit for the first half of 2023 was HKD 42.22 billion, compared to HKD 19.14 billion in the same period of 2022, reflecting a significant recovery[10]. - The company reported a total attributable profit of HKD 2,222 million for the first half of 2023, down from HKD 4,347 million in the same period of 2022[25]. - The attributable basic profit for the first half of 2023 was HKD 3,897 million, a decrease from HKD 4,149 million in the same period of 2022[27]. - The group recorded a property valuation loss of HKD 1,646 million in the first half of 2023, compared to a valuation gain of HKD 757 million in the first half of 2022[27]. - The group reported a decrease in profit from asset sales of HKD 9 million in the first half of 2023, compared to HKD 497 million in the same period of 2022[29]. Debt and Equity - The net debt increased by 52% to HKD 66,915 million from HKD 43,911 million year-on-year[6]. - The capital net debt ratio (excluding lease liabilities) rose to 21.4%, an increase of 7.7 percentage points from 13.7%[6]. - As of June 30, 2023, the company's net debt-to-capital ratio was 21.4%, with available liquid funds of HKD 35.9 billion[16]. - The anticipated profit from the sale of the US bottling business could reduce the net debt-to-capital ratio to 14.9%[16]. - The group’s total borrowings increased to HKD 80,355 million as of June 30, 2023, compared to HKD 68,373 million at the end of 2022[113]. - The net debt-to-equity ratio was 21.4% as of June 30, 2023, up from 13.7% in the previous year[121]. - The group reported a total net debt of HKD 38,471 million as of June 30, 2023, down from HKD 53,738 million at the end of 2022[123]. - The group's attributable share of net debt was HKD 22,951 million as of June 30, 2023, compared to HKD 30,360 million at the end of 2022[123]. Cash Flow and Operations - Cash generated from operations was HKD 7,206 million, up 17% from HKD 6,147 million in the previous year[6]. - The company reported a net cash generated from operations of HKD 5,153 million for the six months ended June 30, 2023, compared to HKD 4,261 million for the same period in 2022, representing a 20.9% increase[133]. - The group reported a net cash inflow from financing activities of HKD 4,126 million for the first half of 2023[112]. - The company’s operating cash flow before interest and tax payments was HKD 4,931 million, up from HKD 3,875 million, reflecting a growth of 27.3%[133]. Dividends and Share Buybacks - The company declared a dividend of HKD 1.20 per 'A' share, a 4% increase from HKD 1.15 in the previous year[6]. - The company announced an interim dividend of HKD 1.20 per 'A' share and HKD 0.24 per 'B' share, representing a 4% increase compared to the first interim dividend in 2022[15]. - The company repurchased shares amounting to HKD 680 million during the reporting period[134]. - The company paid dividends totaling HKD 2,675 million during the six months ended June 30, 2023[134]. Business Segments Performance - The beverage segment reported a 41% increase in attributable recurring profit to HKD 1.627 billion, up from HKD 1.152 billion in the first half of 2022, with total revenue rising 14% to HKD 30.44 billion[12]. - The real estate segment's attributable recurring profit was HKD 31.88 billion, a 6% increase from HKD 29.94 billion in the first half of 2022, driven by strong recovery in retail and hotel businesses in Hong Kong[11]. - The cargo business has been rebranded as "Cathay Cargo" to align with the main brand's vision and values, showing progress in capacity and network expansion[9]. - The aviation sector recorded a profit attributable to shareholders of HKD 1.796 billion in the first half of 2023, compared to a loss of HKD 2.236 billion in the same period of 2022[76]. - Cathay Pacific's passenger revenue reached HKD 25.013 billion, a significant increase of 1,109.5% year-on-year, with passenger numbers rising to 7.816 million, up 2,233.1%[74][78]. Market Expansion and Investments - The company is focusing on sustainable development and expanding into healthcare and sustainable food sectors[3]. - The group has committed approximately 40% of its HKD 100 billion investment plan in Hong Kong, mainland China, and Southeast Asia for various projects[8]. - The group is focusing on long-term investment opportunities in the Greater Bay Area, including Guangzhou and Shenzhen[8]. - The company plans to continue expanding its market presence in Southeast Asia and the United States, focusing on strategic acquisitions and new product developments[136]. Operational Challenges and Outlook - The anticipated profit from the sale of the US bottling business could reduce the net debt-to-capital ratio to 14.9%[16]. - The company expects its performance rebound in the first half of 2023 to continue into the second half, driven by the recovery of Cathay Pacific's business[18]. - The demand for office space in Hong Kong is expected to remain weak in the second half of 2023, with increased competition from Central and East Kowloon[38]. - The group expects to face challenges from labor shortages and rising costs, which may impact financial performance in the second half of 2023[107]. Sustainability and Community Engagement - The company is committed to sustainable development through its SwireTHRIVE strategy, focusing on reducing environmental impact and supporting local communities[17]. - The company is focusing on enhancing office quality and sustainability to meet tenant demands[38].