Swire Pacific Returns To The Black

Swire Pacific has posted a net profit of HK$3.4 billion for 2021, as its mainland and Coca-Cola businesses helped drive the company back into the black.

The conglomerate which has businesses spanning the aviation, beverages and property sectors reported a net loss of HK$11 billion in 2020.

It said its Coca-Cola division saw its profit rise 23 percent, thanks to buoyant growth in the mainland and better performance in the US.

Much narrower losses by Cathay Pacific and its marine services arm Swire Pacific Offshore also contributed to the return to profit.

Swire Properties recorded a 74 percent jump in annual net profit to HK$7.1 billion.

“There was a rebound in HK’s retail market in 2021, however, the overall market remains challenging, with the pace of recovery impacted by the fifth wave of the pandemic,” said Guy Bradley, the chairman of Swire Pacific.

Swire said it has offered full-rental waivers for tenants who are mandated to close under the government’s latest Covid restrictions, and will review its arrangement afterwards.

The government had said it plans to keep the social distancing measures until April 20.

“It’s too early to say really, it’s too uncertain what the outlook is after April 20, we’ll take a view when that time comes,” said Swire Properties Chief Executive Tim Blackburn.

The company said retail sales at its malls on the mainland grew strongly, while its Hong Kong retail segment was recovering and office portfolio was stable.

Swire Properties added that it plans to invest over HK$100 billion in development projects over the next decade.

More than half of the investment will go to the mainland to build retail-led mixed-used development in Tier-1 and emerging Tier-1 cities, the company said.

Swire’s main malls in Hong Kong – Taikoo Place and Pacific Place – will get a third of the investment amount for expansion and reinforcement.

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