Economic conditions in early 2024 were relatively benign with easing inflation and generally within consensus growth. Nevertheless, energy and input costs continued to increase in the UK and Europe while anticipated loosening of monetary policy in the US did not materialise and the US Dollar as a result remained persistently strong by historical standards.
Since the third quarter of the year volatility has increased in equity, currency, bond and debt markets in the US and in several of the major markets in which our businesses operate. Geopolitical and trade tensions have also risen significantly. Commodity markets have fluctuated significantly with oil, gas and refined products prices generally weak as a result of demand concerns associated with weak economic activity.
During the year, the Group recognised one-time non-cash impairment and other provisions on its telecommunication business in Vietnam of HK$3.7 billion as the operating conditions continue to be under significant pressure. However, on the whole, the Group’s underlying operating results were relatively stable.
On a pre-IFRS 16 basis and excluding the one-time losses mentioned above, underlying EBITDA increased 2% in local currencies compared to 2023, primarily from good growth in the Ports division, improvements across all of the operations in CKHGT, as well as stable performance from the Retail and Infrastructure divisions, partly offset by certain treasury gains on non-core asset disposal in 2023 which did not recur in 2024 and lower contribution from Cenovus Energy. Underlying EBIT decreased by 1% in local currencies against last year due to higher depreciation and amortisation, primarily due to CKHGT and higher share of depreciation of Cenovus Energy.
Underlying profit attributable to ordinary shareholders on a pre-IFRS 16 basis of HK$20,770 million decreased 10% in local currencies against 2023, reflecting increased tax charges from a higher effective tax rate in 2024. Including the one-time non-cash impairment and other provisions on the telecommunication business in Vietnam, on a Post-IFRS 16 basis, reported profit attributable to ordinary shareholders of HK$17,088 million decreased 27% against last year.
Reported earnings per share were HK$4.46 for the year ended 31 December 2024 (31 December 2023 – HK$6.14).
Dividend
The Board of Directors recommends a final dividend of HK$1.514 per share (2023 final dividend –
HK$1.775 per share), payable on Thursday, 12 June 2025, to shareholders whose names appear on the Register of Members of the Company at the close of business on Wednesday, 28 May 2025, being the record date for determining shareholders’ entitlement to the proposed final dividend. Combined with the interim dividend of HK$0.688 per share, the full year dividend amounts to HK$2.202 per share (2023 full year dividend – HK$2.531 per share).
Ports and Related Services
This division reported revenue of HK$45,282 million, an increase of 11% compared to 2023, primarily driven by 6% higher throughput with growth across all segments, a 13% uplift in storage income and the favourable performance of a shipping line associated company. Consequently, EBITDA(1) of HK$16,172 million and EBIT(1) of HK$11,873 million, increased by 19% and 27% respectively compared to 2023, due to higher revenue as mentioned above and effective cost controls.
Looking ahead to 2025, there may be headwinds with supply chain disruptions anticipated in the early part of the year due to shipping lines transitioning into their new alliances, as well as ongoing geopolitical risk impacting global trade. However, moderate organic growth is expected to continue mainly from Asia and Middle East, which together with expansion at existing terminal facilities and strengthening strategic partnerships, the division will look to deliver improvements in operating results in the coming year.
Retail
The division’s total revenue of HK$190,193 million increased by 4% in reported currency against last year, while EBITDA(2) and EBIT(2) of HK$16,395 million and HK$13,018 million both increased by 1%. In local currencies, total revenue increased by 5%, while EBITDA and EBIT both increased by 2%. Most operations in this division delivered favourable performance, except for non-ASEAN Asia regions which suffered from declined store footfall and weak consumer confidence. Excluding the non-ASEAN Asia regions, EBITDA and EBIT both achieved a strong growth of 10% in local currencies against last year.
Looking ahead, the European and ASEAN Asian businesses are projected to maintain strong performance, while the Asian operations in non-ASEAN markets are anticipated to show improvement through store network optimisation and various strategic actions. Leveraging its 170 million loyalty customer base, this division will focus on deepening customer engagement and maximising lifetime value, maintaining a rapid return on investment for store openings, as well as delivering revenue growth through its online plus offline platform strategy.
Infrastructure
The Infrastructure division comprises a 75.67% interest in CK Infrastructure Holdings Limited (“CKI”), a subsidiary listed in Hong Kong as well as interests in six co-owned infrastructure investments with CKI.
CKI Profit contributions from operating businesses reported strong growth of 10% year-on-year. However, net profit was impacted by treasury items including higher interest cost and lower foreign exchange gain, resulting in the announced net profit under Post-IFRS 16 basis of HK$8,115 million being 1% higher than last year.
Looking into 2025, this division’s regulated businesses will continue to provide steady and recurring income and the non-regulated businesses will also generate good growth contributions. Together with its strong financial position, this division is well placed to capitalise on investment opportunities as they arise.
Source: CK Hutchison Holdings