12th March 2020

Swire Pacific Limited Announces 2019 Annual Results

After an encouraging first half, in which Swire Pacific delivered a continued recovery in earnings and a solid set of results, 2019 proved ultimately to be a challenging year. Social unrest in Hong Kong and global trade tensions (particularly in the second half) had direct and indirect effects on demand in a number of our businesses.

The results of the Property Division were stable overall in 2019, with encouraging growth in rental income from our retail investment properties in Mainland China. Cathay Pacific did well in the first half, but was adversely affected by global trade tensions and, in the second half, by social unrest in Hong Kong. Most HAECO businesses performed solidly. The profits of Swire Coca-Cola grew strongly, in particular in Mainland China. Swire Pacific Offshore continued to
incur losses and was subject to a further significant impairment charge.

The consolidated profit attributable to shareholders for 2019 was HK$9,007 million, a 62% decrease compared to 2018. Underlying profit attributable to shareholders, which principally adjusts for changes in the value of investment properties, increased by 109% to HK$17,797 million. Disregarding significant non-recurring items in both years, the 2019 recurring underlying profit was HK$7,221 million, compared with HK$7,489 million in 2018. The decrease was mainly due to a deterioration in the results of Cathay Pacific. Dividends for the full year were maintained at the same level as those for 2018.

Below is the 2019 Performance Highlights of Swire Coca-Cola:
  • The recurring profit of Swire Coca-Cola was HK$1,584 million in 2019, compared with HK$1,354 million in 2018.
  • Revenue (including that of a joint venture company and excluding sales to other bottlers) increased by 5% to HK$44,719 million. Volume increased by 2% to 1,786 million unit cases.
  • Revenue and volume grew in Mainland China, Taiwan Region and the USA, reflecting successful revenue growth management. In Hong Kong, revenue and volume declined.

For more information: https://www.swirepacific.com/en/media/press/p200312a.pdf