Title: Shangri-La Asia Delivers Robust Performance Amid Challenging Landscape
Shangri-La Asia Limited, the renowned hospitality group, has recently announced its 2024 final results, showcasing its resilience and adaptability in the face of a changing industry landscape. The key highlights from the report are as follows:
Operational Resilience:
Consolidated revenue increased by 2.0% to USD2,185.4 million, despite the challenging market conditions. [[Page 1]]
Effective share of revenue from the company, subsidiaries, and associates declined by 4.2% to USD2,653.6 million, primarily due to a sharp 73.9% drop in Property Development for Sale revenue. [[Page 1]]
The Group’s effective share of EBITDA decreased by 13.0% to USD760.1 million, mainly driven by an 87.9% reduction in the effective share of EBITDA from Property Development for Sale. [[Page 1]]
Profit and Dividends:
Profit attributable to owners of the Company declined by 12.3% to USD161.4 million, reflecting a decrease in net gains from non-operating items. [[Page 2]]
The Board recommends a final dividend of HK10 cents per ordinary share, bringing the total dividend for the full year 2024 to HK15 cents per share. [[Page 2]]
Balance Sheet Strength and Liquidity:
The Group’s net borrowings decreased significantly by USD296.3 million to USD4,421.3 million, driven by robust cash flows and restrained capital expenditure. [[Page 23]]
The Group’s net borrowings to total equity ratio (gearing ratio) improved to 81.3% from 86.3% in the previous year. [[Page 23]]
The Group successfully issued its first panda bonds in Mainland China, raising RMB2,000 million (equivalent to USD278.2 million) at low coupon rates, diversifying its funding sources and enhancing financial flexibility. [[Page 23]]
Operational Highlights:
The Group’s weighted average occupancy for its hotels increased to 63%, while the weighted average revenue per available room (RevPAR) remained flat at USD108. [[Page 13]]
The Investment Properties business continued to perform well, with consolidated revenue increasing by 16.2% to USD125.8 million. [[Page 18]]
The Property Development for Sale segment saw a decline in revenue to USD2.3 million, down from USD1.6 million in the previous year. [[Page 18]]
Outlook and Strategic Initiatives:
The Group remains focused on enhancing returns and creating value for its stakeholders through strategic projects and initiatives, such as the revamp of its portfolio to better serve guest and customer needs. [[Page 36]]
The Group is dedicated to delivering its renowned Asian hospitality and looks forward to welcoming guests to both its time-honored and new properties. [[Page 37]]
The Group will stay vigilant on costs to ensure topline growth translates to stronger bottom line and cash generation, while remaining selective and strategic in its project undertakings. [[Page 36]]
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and due diligence before making any investment decisions. The information provided in this article is believed to be accurate at the time of writing, but the author and the publication cannot guarantee its accuracy or completeness. The author and the publication shall not be held responsible for any direct, indirect, or consequential damages or losses arising from the use of the information contained in this article.
View Shangri-La HKD Historical chart here
