Shangri-La Asia Limited (HKSE stock code: 00069/SGX stock code: S07) today reported the financial results of the Company and its subsidiaries (“Group”), and associates for the six months ended 30 June 2024. Highlights of the report include:
- Consolidated revenue of the Group was USD1.05 billion, an increase of 4.3% compared to USD1.006 billion, for the same period last year.
- Consolidated Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) was USD252.3 million, a decrease of 5.2% compared to USD266 million for the same period last year.
- Consolidated EBITDA margin was 24.1%, a decrease of 2.3 percentage points compared to 26.4% for the same period last year.
- Profit attributable to owners of the Company before non-operating items was USD59.1 million, a decrease of 8.5% compared to USD64.6 million, for the same period last year.
- Free Cash Flow was USD46.3 million, from negative USD14.6 million during same period last year.
- Interim dividend of HK 5 cents declared.
Commenting on the interim results, Shangri-La Group’s Chief Financial Officer, Chua Chee Wui, said, “Our disciplined and pre-emptive approach in driving topline, cost management and debt strategies have enabled us to protect our bottom-line whilst turning our 1H24 free cash flow positive to USD46.3 million from negative USD14.6 million in 1H23. This, along with our strong balance sheets, gives us the confidence to resume interim dividend payments.”
Shangri-La Group’s Chairman, Hui Kuok, said: “Our strong recovery reflects our unrelenting focus on understanding our customers and providing them with the experience they have come to expect from Shangri-La. The positive response we have been receiving for our new products is encouraging and we will continue to invest in our people and build our capabilities to ensure that we are able to provide for the evolving expectations of our customers. We are also very cognisant to the uncertainties of our interconnected world, and are being vigilant and thoughtful, to ensure that Shangri-La continues to not only evolve but thrive.”
The Group successfully issued two rounds of Panda Bonds in June and July 2024 respectively totalling RMB2 billion, achieving various firsts as non-state-owned entities. The two tranches of 3-year Panda Bond achieved record coupon rates at 2.5% and 2.27% respectively at their time of issuance while the 5-year Panda Bond being the first for a Hong Kong-based enterprise. These issuances broaden the Group’s funding sources whilst better aligning its currency and asset geographical exposure.
The Group continues to expand its footprint and enhance its portfolio to provide a more integrated guest experience. In April, it opened a new shopping mall in Fuzhou, China. Additionally, it also launched JEN Kunming by Shangri-La, serving as a pilot for having two brands in one single building, with Shangri-La Kunming’s full debut slated for 2025.
As of 30 June 2024, the Group continued to maintain a healthy balance sheet with cash and bank balances of USD1,916 million and total committed undrawn facilities of USD550 million.
Island Shangri-La Hong Kong
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