Jardine Cycle & Carriage Ltd (JC&C) reported profit attributable to shareholders of US$363 million for the six months ended Jun 30, a 2 per cent year-on-year decline that management linked to softer contributions from its Indonesian portfolio, lower dividend income and the absence of one-off foreign-exchange gains booked a year earlier.
Underlying revenue slipped 8 per cent to US$9.99 billion, while underlying profit – the group’s preferred measure of recurring performance – fell 11 per cent to US$473 million. Basic earnings per share came in at 92 US cents, with underlying EPS at 120 US cents.
The board declared an unchanged interim dividend of 28 US cents a share, payable on 5 Oct 2026. In addition, directors will seek shareholder approval for a special distribution of about 73 US cents a share, comprising 37 US cents in cash and an in-specie distribution of the group’s remaining Toyota Motor Corp shares valued at roughly 36 US cents.
Indonesia remained the largest earnings contributor, although underlying profit from the country contracted 8 per cent to US$428 million. Astra International’s mining solutions and heavy-equipment arm saw profit drop 45 per cent to US$80 million on lower coal volumes and minimal gold sales, offsetting a 5 per cent lift in automotive profit and a 2 per cent rise in financial-services earnings.
Vietnam delivered a 21 per cent rise in contributions to US$43 million. THACO’s profit surged 65 per cent to US$28 million as real-estate handovers picked up, although automotive margins contracted. REE Corp added US$11 million, up 15 per cent, while dividend income from Vinamilk more than halved after JC&C trimmed its stake.
Regional Interests posted a 24 per cent fall in profit to US$16 million, weighed down by softer new-car sales at Cycle & Carriage Singapore following regulatory changes.
Headwinds included continued macro-economic pressure in Indonesia, a temporary halt in gold shipments from the Martabe mine, and the non-recurrence of US$33 million in forex gains recorded in the prior period.
During the half JC&C recycled US$334 million of capital, selling partial stakes in Vinamilk and Toyota for US$188 million and US$146 million respectively, and used the proceeds to cut corporate net debt to US$286 million. The group is also proposing to change its name to Jardine Matheson Southeast Asia Ltd, reflecting its role as the Jardine Matheson group’s regional holding vehicle.
Chief executive officer Freddy Lee said the portfolio review confirmed that value creation “resides principally within our core operating companies”. He noted that Astra’s fundamentals remain sound despite near-term headwinds, and that favourable economic conditions underpin the growth trajectory of THACO and REE in Vietnam. Lee added that management will maintain “a more disciplined approach to capital allocation”, continue supporting portfolio companies, and evaluate further opportunities to sharpen the group’s focus and reduce leverage.