Swire Pacific reports lower 2022 profits as Covid-19 curbs hit units Cathay Pacific, Swire Properties, Swire Coca-Cola
- Underlying profit dropped 10 per cent as Covid-19 curbs led to losses at Cathay Pacific, while profits fell at Swire Properties and Swire Coca-Cola
- The company is optimistic about growth now that Hong Kong and mainland China have removed all pandemic restrictions, Swire Pacific chairman says
Swire Pacific’s profits fell 10 per cent in 2022 as losses widened at Cathay Pacific and other business units while profits fell at Swire Properties, reflecting Hong Kong’s difficult business environment under the city’s worst wave of Covid-19 infections and harshest pandemic restrictions.
The Hong Kong-based conglomerate’s underlying profit fell to HK$4.748 billion (US$604.8 million) in 2022 from HK$5.293 billion in 2021, while recurring underlying profit fell by 22 per cent to HK$3.8 billion, according to a filing with the Hong Kong stock exchange on Thursday.
Units besides Cathay Pacific that contributed to lower profits included Swire Coca-Cola, where margins fell due to pandemic measures and surging costs, and aircraft maintenance and engineering firm Haeco, Cathay Pacific’s sister company.
Real estate arm Swire Properties posted a 9 per cent year-on-year decrease in underlying profit to HK$8.7 billion, with recurring underlying profit falling less than half a per cent to HK$7.176 billion.
“The economic environment remained challenging, with Covid-19 related measures continuing to affect our operating results,” said Guy Bradley, Swire Pacific’s chairman. “The measures made for a difficult first quarter in Hong Kong, especially for Cathay Pacific, and had a significant impact on all our businesses in the Chinese mainland in the second and third quarters.”
