LONDON (Alliance News) - Jardine Matheson Holdings Ltd, the Asian-based business group with interests in the likes of Jardine Pacific, Jardine Motors, Jardine Lloyd Thompson, Hongkong Land, Dairy Farm, Mandarin Oriental, Jardine Cycle & Carriage and Astra, on Thursday said challenging trading conditions continued into 2016, leading to earnings being modestly lower than in the corresponding period a year earlier.
Of the group's businesses held directly by Jardine Matheson, Jardine Pacific saw "satisfactory" profit growth due to "good" performances in a number of its business units, the company said in a statement.
In Jardine Motors, improved contributions from mainland China and the UK were partly offset by softer market conditions in Hong Kong.
Jardine Lloyd Thompson's insurance businesses made a good start to the year, despite a difficult trading environment, the company said. In JLT's employee benefits businesses, the international operations performed well and "significant progress" was made in improving UK profitability.
Within businesses held through Jardine Strategic, rental reversions in Hongkong Land's Hong Kong office portfolio remain positive and occupancy levels were little changed, Jardine Matheson said. While its residential activities are facing "lacklustre" conditions in Singapore, there are signs of improvement in its key mainland China markets.
Dairy Farm's food and health and beauty retail operations experienced "subdued" sales growth, margin challenges and unfavourable exchange rate movements, Jardine Matheson said. But the effect on earnings was offset by contributions from the recently acquired Yonghui Superstores and San Miu interests, as well as from improved performances from IKEA and Maxim's.
Mandarin Oriental saw its earnings fall after "softer" demand in its important markets of Hong Kong and London.
Astra in Indonesia continued to experience "subdued" automotive demand and weak commodity prices, and saw a further deterioration in corporate credit quality.
Shares in Jardine Matheson were untraded at USD56.22 on Thursday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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