Swire Pacific’s turnaround aided by record earnings at Coca-Cola unit, lower losses at Cathay Pacific
- Conglomerate posts underlying profit of HK$5.3 billion (US$677 million) last year versus underlying loss of HK$3.9 billion in 2020
- Profit at Swire Coca-Cola business rises by 23 per cent to a record HK$2.5 billion last year
Swire Pacific returned to profitability last year following record profit at its beverage unit, aided by significantly lower losses and impairment charges at its aviation and marine businesses.
The Hong Kong-based conglomerate reported an underlying profit of HK$5.3 billion (US$677 million), compared with a loss of HK$3.9 billion in 2020, according to a filing to the Hong Kong stock exchange on Thursday. Turnover rose 15 per cent to HK$92.4 billion.
“Whilst the impact of Covid-19 continued to be felt across all our divisions and the operating environment remained challenging in 2021, overall our businesses made a significant turnaround,” chairman Guy Bradley said in a statement.
Its airline business under Cathay Pacific Airways on Wednesday trimmed losses to HK$5.5 billion, compared with a record loss of HK$21.6 billion in 2020. While the carrier’s passenger services were hammered by strict Covid-19 travel curbs, its cargo business mitigated the slump.
The company’s beverages division, Swire Coca-Cola, reported a 23 per cent jump in attributable profit to a record HK$2.5 billion from 2020 when business was severely affected by the pandemic.
Swire also sold its marine services businesses. In September, it completed the sale of its 50 per cent interested in HUD Group, while on Wednesday, it entered into an agreement to sell its interest in Swire Pacific Offshore.
Houston-based Tidewater will acquire all existing shares of Swire Pacific Offshore for about US$190 million, creating the world’s largest fleet of offshore supply vessels. Swire Pacific’s fleet consists of 29 anchor handling towing vessels and 21 platform supply vessels.
The disposal of Swire Pacific Offshore aligns with the company’s strategy to focus on its core businesses, Bradley said at a press briefing after the results were released.
