2023 Interim Results: CK Hutchison Group Reports Decrease in Revenue and Profits
On August 3, Cheung Kong Hutchison Industries Co., Ltd. released its 2023 interim results, revealing a decline in revenue and profits for the first half of the year.
According to the announcement, CK Hutchison Group (after IFRS16) generated a total revenue of 223.867 billion Hong Kong dollars, representing a 13% year-on-year decrease. The total EBITDA for the same period was 61.151 billion Hong Kong dollars, also experiencing a 13% decrease. Furthermore, the profit attributable to ordinary shareholders showed a significant decline of 41%, amounting to 11.208 billion Hong Kong dollars.
The port and related services sector, operated by the CK Hutchison Group, witnessed a decrease in performance. The sector managed 293 berths in the first half of 2023, handling 39.3 million TEUs, which was a 7% decrease compared to the same period last year. The department’s total revenue amounted to HK$19.863 billion, while the EBITDA reached HK$6.59 billion, marking a decrease of 12% and 20% respectively from the first half of 2022.
Despite these challenges, CK Hutchison’s retail division displayed resilience. The retail division operated 16,164 stores across 28 markets, experiencing a slight 1% decrease compared to the previous year. However, the division recorded total revenue and EBITDA of HK$88.619 billion and HK$7.056 billion respectively. This represented a 4% increase in total revenue and a significant 17% increase in EBITDA compared to the previous year, in terms of reporting currency.
In the infrastructure sector, Cheung Kong Infrastructure reported a net profit attributable to shareholders of HK$4.239 billion based on the post-IFRS 16 benchmark. CK Hutchison Group Telecom reported a revenue of HK$41.761 billion, with an EBITDA of HK$10.019 billion. The European 3 Group also experienced growth with a revenue of HK$38.751 billion, representing a 1% increase in local currency compared to the same period last year.
However, there were challenges in Hutchison Telecom Asia, as the division reported a decrease in total revenue and EBITDA of 1% and 75% respectively compared to the previous year.
In terms of finance, CK Hutchison Group had combined cash and realizable investments totaling HK$146.735 billion. However, the total bank and other debts amounted to HK$285.928 billion, resulting in net debt of HK$139.193 billion. The ratio of net debt to total net capital was 17.0%.
These interim results provide insights into CK Hutchison Group’s performance for the first half of 2023. Despite the challenges faced in certain sectors, the retail division showcased growth, while other sectors experienced varying degrees of decline. The company will continue to navigate these market conditions and seek opportunities for future growth.