Swire Pacific Earnings: Property and Beverage Weakness Offsets Strong Aviation Performance

Narrow-moat Swire Pacific’s first-half 2024 performance was below our expectations due to weakness in domestic consumer spending in mainland China dragging its beverage segment performance. This was partly offset by its Hong Kong and Taiwan beverage division, which saw better EBITDA margins attributable to good cost control and strong performance from its aviation segment. Swire Pacific’s property division also reported weaker recurring underlying profit, given the headwinds faced by its Hong Kong office and retail properties. However, this was largely in line with our expectations.