Jardine Cycle & Carriage Limited, a subsidiary of Jardine Matheson Holdings Ltd, released its Interim Management Statement for the first quarter of 2024. The report highlighted softer trading conditions in Indonesia and Vietnam, impacting various divisions within the group.
In Indonesia, Astra reported a 5% decrease in underlying profit, mainly due to lower car and motorcycle sales, as well as reduced profit from heavy equipment and mining divisions. However, the financial services division saw improved earnings. In Vietnam, THACO's automotive sales volume remained flat due to economic challenges and soft consumer demand.
The Direct Motor Interests division experienced lower profits, with Cycle & Carriage in Singapore impacted by higher leasing expenses and lower profit contribution from used car operations. Tunas Ridean in Indonesia also saw lower sales volume. However, Cycle & Carriage Bintang in Malaysia completed its transition to an agency model at the beginning of the year.
The report also mentioned improved profits in Siam City Cement and the inclusion of Refrigeration Electrical Engineering Corporation's first-quarter performance in JC&C's half-year results. However, the group faced foreign exchange losses on its foreign currency loans in the current period.
Looking ahead, JC&C anticipates facing headwinds for the remainder of the year due to global geopolitical and economic uncertainties, which could further impact the economic recovery of the group's markets. Despite this, the company remains confident in the long-term growth potential of its overall portfolio.
Jardine Cycle & Carriage is the investment holding company of the Jardine Matheson Group in Southeast Asia, with investments in market-leading businesses such as Astra, THACO, and various other strategic interests. The company aims to deliver sustainable growth and create opportunities for stakeholders in Southeast Asia.
This comprehensive interim management statement provides insights into the performance of Jardine Cycle & Carriage Limited in the first quarter of 2024, offering a detailed overview of the challenges and successes experienced by the group's various divisions in Indonesia and Vietnam.