Principal Activities
CK Hutchison has five core businesses - ports and related services, retail, infrastructure, telecommunications and finance & investments and Others.
Latest Results
The Group's profit attributable to shareholders for the 6 months ended 30-06-2025 amounted to HKD 852.0 million, a decrease of 91.7% compared with previous corresponding period. Basic earnings per share was HKD 0.2225. A dividend of HKD 0.71 per share was declared. Turnover amounted to HKD 139.13 billion, an increase of 2.0% over the same period last year, gross profit margin down 1.3% to 61.5%. (Announcement Date: 14 Aug 2025)
Business Review - For the six months ended June 30, 2025
Ports and Related Services
This division reported revenue of HK$23,597 million, an increase of 9% compared to first half of 2024, primarily driven by 4% higher throughput mainly from Yantian Ports, Shanghai Ports, and terminals in Asia and Middle East, as well as a 27% surge in storage income contributed by Mexico and European ports and the favourable performance of a shipping line associated company.Consequently, EBITDA(2) of HK$8,719 million and EBIT(2) of HK$6,508 million, increased by 10% and 12% respectively in the first half, as a result of increased revenue from strong performance and efficient cost management.Looking into the second half, global trade and consumer demand will remain volatile due to the uncertain outcome of trade disputes and geopolitical risks. However, with moderate organic volume growth at certain terminals, particularly in Asia, and additional volume from the new facility in Egypt, as well as improved operating margin from cost efficiencies, the division expects to deliver good earnings growth for the full year.
The division’s total revenue of HK$98,840 million increased by 8% in reported currency against the same period last year, while EBITDA(3) and EBIT(3) of HK$7,974 million and HK$6,180 million increased by 12% and 14% respectively. In local currencies, total revenue increased by 6%, while EBITDA increased by 8% and EBIT by 9%. The majority of this division’s operations improved against the same period last year driven by robust growth in Health and Beauty businesses in the UK, Poland and the Philippines. This was partly offset by adverse performance of Health and Beauty China which continue to suffer from weak consumer demand. Excluding Health and Beauty China, EBITDA and EBIT both achieved solid growth of 11% in local currencies compared to the first half of 2024.Looking ahead, most businesses in Europe and Asia are projected to continue to deliver strong results, while Health and Beauty China will continue to face headwinds in the second half. In order to mitigate challenges and maintain a sound financial profile, Health and Beauty China is sharpening its value propositions and is optimising its store footprint and adding dark stores(4) to further enhance the online business capabilities. The division will focus on expanding and nurturing its 175 million loyalty member base through optimisation of customer journey, driving revenue growth via its integrated online plus offline platform strategy, and maintaining a short payback period for investments in new stores and refurbishments.
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
CKI announced net profit attributable to shareholders under Post-IFRS 16 basis of HK$4,348 million, 1% higher than the same period last year, reflecting steady performance of the portfolio of infrastructure assets despite geopolitical and economic uncertainties characterised by shifting political landscapes, a complex interest rate outlook, trade disruptions and inflationary pressures.In July 2025, Eversholt UK Rails Group Limited, a joint venture company of CKI, CK Asset Holdings Limited, Power Assets Holdings Limited and the Group, entered into an agreement to divest UK Rails. Completion of the transaction is subject to the fulfilment of certain conditions under the sales and purchase agreement. Once completed, the proceeds from this transaction will reduce CKI’s net debt to net total capital ratio significantly.Looking into the remainder of the year, 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.
CK Hutchison Group Telecom
On 31 May 2025, the merger of 3 UK and Vodafone UK was completed with the formation of the combined business, VodafoneThree, now a 49% associated company of the Group. CKHGT also received approximately£1.3 billion net proceeds on completion of the merger. VodafoneThree is currently the largest mobile network operator in the United Kingdom with 28.8 million customers and is expected to deliver network improvements for its customers through seamless access of both networks. The combined network will also remove 16,500 km2 of“not spot”areas by the end of 2025.
Revenue of CKHGT was HK$45,012 million (5,216 million), 5% higher against last year in reported currency. EBITDA and EBIT included one-time non-cash loss on the UK merger and related impacts(5), excluding which, underlying EBITDA(6) of HK$13,160 million was 12% higher against the same period last year in reported currency, primarily due to treasury gains of HK$0.7 billion from bond buybacks, and higher underlying EBITDA contribution from 3 Group Europe. Underlying EBIT(6) of HK$2,518 million was 38% higher due to EBITDA growth, partly offset by higher depreciation of 3 Group Europe following the UK merger completion.
3 Group Europe
Revenue of HK$41,958 million was 3% higher against the same period last year in local currencies, primarily driven by growth in net customer service revenue from the higher customer base, favourable revenue initiatives, higher MVNO and other wholesale revenue, as well as one month accretive contribution from the share of revenue of VodafoneThree.
3 Group Europe reported an overall 6% higher total margin in local currencies. Underlying EBITDA(7) of HK$11,816 million was 4% or HK$475 million higher against the same period last year in local currencies, primarily driven by one month accretive EBITDA contribution from VodafoneThree, as well as margin growth of other operations, partly offset by higher network costs from the expanded networks. Depreciation and amortisation increased by 5% or HK$487 million due to higher depreciation from enlarged network asset base and share of higher depreciation of VodafoneThree following completion of the merger at the end of May 2025. Correspondingly, underlying EBIT(7) of HK$1,737 million was 1% or HK$12 million lower against the same period last year in local currencies.
For the remainder of the year, VodafoneThree plans to invest£1.3 billion in capex in its first year to accelerate the network deployment and will invest£11 billion over the next 10 years to create one of Europe’s most advanced 5G networks for a vastly superior mobile experience to its customers and businesses. The operation will also focus on delivering the cost and capex synergies target of£700 million per annum by the fifth year after merger completion. The rest of the operations will aim to deliver stable underlying performance through growing customer base, continuing revenue initiatives, stringent cost discipline and stabilising depreciation under tight management of capital spending. All operations are engaged in a comprehensive review exercise to identify major opportunities to increase productivity and reduce costs over the next five years.
Finance & Investments and Others
This segment’s underlying EBITDA and EBIT results remained stable compared to the same period last year, primarily due to a one-time gain on the partial disposal of a non-core asset of HUTCHMED, largely offset by lower contributions from Cenovus Energy and Indosat Ooredoo Hutchison (“IOH”).The Group’s 17.1% share of Cenovus Energy’s Post-IFRS 16 EBITDA, EBIT and net earnings were HK$4,716 million, HK$2,304 million and HK$1,636 million, a decrease of HK$788 million, HK$809 million and HK$480 million compared to last year respectively, mainly reflecting the decline in commodity prices and major maintenance and turnaround activities, partly offset by increased downstream throughput.IOH, the Group’s telecommunications joint venture in Indonesia, reported on a Post-IFRS 16 basis a 4% decline in EBITDA and a 15% decline in net profit compared to the same period last year, due to challenging business environment.The Group’s liquidity and financial profile further strengthened with the receipt of approximately£1.3 billion net proceeds upon completion of the UK merger, as well as continued cash flow generation from measured capital spending and disciplined working capital management.Consolidated cash and liquid investments at 30 June 2025 totalled HK$137,268 million and consolidated total bank and other debts(8) amounted to HK$256,589 million, resulting in consolidated net debt(8) of HK$119,321 million (31 December 2024–HK$129,614 million) and net debt to net total capital ratio(8) of 14.7% (31 December 2024–16.2%).
Sustainability
In April 2025, the Group released its 2024 Sustainability Report, highlighting the latest sustainability performance and achievements throughout the year. The Group remains dedicated to sustainable operations and pursuing the goal of achieving net-zero greenhouse gas emissions across its value chain by 2050. To date, the Group has achieved approximately 20% reduction in scope 1 and 2 emissions from the 2020 baseline and has also started reporting scope 3 emissions by categories, allowing stakeholders to better understand our emission performance across our full value chain.To support the delivery of the Group’s sustainability targets and reinforce organisational alignment across our operations, management compensation plans of certain core divisions will incorporate measurable sustainability metrics this year. By embedding these metrics, the Group aims to align divisional management priorities and encourage long-term sustainable business decisions across the Group.Diversity and inclusion are core values embraced by the Group which published its first“Workforce Diversity Policy”in 2025. The policy includes a clear direction and approach with respect to employment, including recruitment and selection, professional development and training, compensation and benefits, performance evaluation and career advancement.With regards to the US$1 billion US Dollar Green note issued in April 2024, the Group also published a Green Bond Report in 2025, outlining the scope of allocation and use of proceeds, with 46% of the funds being allocated to in Energy Efficiency projects, 24% to Clean Transportation projects, 20% to Renewable Energy development and utilisation, and the remaining allocated to Circular Economy and Design projects.
Business Outlook - For the six months ended June 30, 2025
The global economic outlook in this half will continue to be uncertain and unpredictable, with persistent unresolved trade and fiscal and monetary policy issues affecting commodity prices, interest and currency rates, as well as consumer and business sentiment. Geopolitical uncertainty is likely to remain elevated. The Group will remain prudent on capital spending and new investment, and will maintain disciplined cash flow management in order to ensure that it retains a strong financial profile regardless of externalities.
Source: CK Hutchison (00001) Interim Results Announcement |