Swire’s flagships post strong interim results, capping family scion’s helmsmanship of Hong Kong units through rough times

Swire Pacific posted an interim profit of HK$1.26 billion, from last year’s loss of HK$5.48 billion, while sales rose 20 per cent to HK$46.73 billion

Swire Properties’ underlying profit excluding revaluation gains rose 20 per cent to HK$4.51 billion, while revenue jumped 38 per cent to HK$9.06 billion

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Swire Group’s office at Pacific Place in Hong Kong’s Admiralty, flanked by the Conrad Hotel (right), on April 28, 2017. Photo: Shutterstock

Published: 4:15pm, 12 Aug 2021Updated: 10:25pm, 12 Aug 2021

The Swire Group’s two publicly listed flagship companies delivered strong financial results in the first six months of 2021, marking a strong bookend to the tenure of Merlin Bingham Swire before the sixth-generation scion of the founder steps down on August 24 as chairman.

Swire Pacific, one of Asia’s largest conglomerates, returned to profit with HK$1.26 billion (US$162 million) in underlying interim net income, swinging from a loss of HK$5.48 billion last year. Sales of the group, with businesses from aviation to offshore marine and real estate, rose 20 per cent to HK$46.73 billion.

Swire Properties, 82 per cent owned by Swire Pacific, reported that underlying profit excluding revaluation gains on investment properties rose 20 per cent to HK$4.51 billion, while higher property rental income boosted revenue by 38 per cent to HK$9.06 billion.

“We are focusing on delivering our corporate strategy, are well positioned for a recovery and have strong growth opportunities in Greater China in sectors that are exposed to the growing spending power of the middle class,” Swire said in a statement. “Our core property and beverages businesses are growing strongly. We have divested noncore assets, repositioned our aviation business and entered the health care sector.”

Merlin Bingham Swire (foreground) will hand over the chairmanship of Swire Pacific and Swire Properties to CEO Guy Bradley (background) on August 24. The two are photographed at a results announcement on March 14, 2019 in Admiralty. Photo: KY Cheng

Swire Pacific said it would pay an interim dividend of HK$1 per share, higher than last year’s payout of 70 Hong Kong cents. Swire Properties will pay 31 Hong Kong cents per share in first-half dividend, 3 per cent more than last year’s 30 Hong Kong cents.