SHANGRI-LA GROUP RELEASES 2023 FULL YEAR RESULTS
Shangri-La Asia Limited (HKEX stock code: 00069/SGX stock code: S07) today reported the financial results of the Company and its subsidiaries (“Group”), and associates for the year ended 31 December 2023. |
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SHANGRI-LA GROUP RELEASES 2023 FULL YEAR RESULTS
Shangri-La Asia Limited (HKEX stock code: 00069/SGX stock code: S07) today reported the financial results of the Company and its subsidiaries (“Group”), and associates for the year ended 31 December 2023. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2024-03-25
Highlights include: - The Group's effective share of revenue was USD2.8 billion, recovered to 95% of FY2019.
- Effective share of the Group’s earnings before finance costs, tax, depreciation, amortisation and non-operating items (“EBITDA”) was USD874 million, recovered to 101% of FY2019.
- Effective EBITDA margin was 31.5%, the highest in a decade.
- Operational Cash Flow was USD364 million, recovered to 102% of FY2019.
- Free Cash Flow turned positive to USD145 million, against FY2022’s negative USD83 million and 40x of FY2019’s.
- Resuming Dividend payout of HK15 cents per share.
Commenting on the results, Shangri-La Group’s Chief Financial Officer and Chief Investment Officer, Chua Chee Wui, said, “While the top line has not completely rebounded to pre-pandemic levels, our focus on sustained cost efficiencies implemented during the COVID era, has led to a full bottom-line recovery and has put us in a good financial position in the post-pandemic landscape. Combined with our disciplined approach to financial management and strategic investments, this has also led to the turnaround of our Free Cash Flow to USD145 million from negative USD83 million in FY2022. This, along with our cautiously optimistic view that the market has stabilised, gives us the confidence to resume dividend payments.”
Shangri-La Group’s Chairman, Hui Kuok, said, “2023 marked a turning point for us as our key markets fully reopened, and both international and domestic travel rebounded. Whilst the pandemic was one of the most challenging periods in Shangri-La’s history, we took the crisis as an opportunity to reaffirm our commitment to delivering our signature brand of heartfelt Asian hospitality.
The pandemic has arguably reshaped why people travel and visit hotels, highlighting the importance of our unrelenting focus on understanding and meeting our guests’ evolving needs. Our strong recovery reflects our success in expanding our customer base and driving loyalty. While our disciplined approach to cost management during COVID strengthened our financial foundations, we also persisted in our ongoing strategic transformation, investing in and innovating across our people, products and customer engagement initiatives throughout the pandemic.
Our most valuable asset is undoubtedly our people. Therefore, I would like to take this opportunity to thank each and every one of our colleagues for their dedication and resilience, which have been and will continue to be crucial to our success.”
The Group’s disciplined approach to cost management, initiated during the pandemic, continues to yield positive results.
Whilst revenue has not yet fully recovered, profitability has exceeded pre-pandemic levels.
While sustaining these efficiencies, the Group also continues to prioritise its long-term strategic initiatives across its products, services, and customer engagement.
This focus aims to cater more comprehensively to meeting its customers' diverse and evolving needs, especially in the personal leisure segment, which has driven the recovery in post-pandemic travel.
In terms of increasing engagement with its guests, the revamp of its loyalty programme, Shangri-La Circle, in April 2022, has continued to generate unparalleled levels of direct engagement and customer retention.
Despite the complex macro environment, the Group is proud of its performance in China. The openings of JEN Qianhai in 2023 and Shangri-La Nanshan in 2024 reflect the Group's commitment to the Chinese market.
With a continued focus on China's resilient high-end luxury consumption and diversification of its portfolio outside Mainland China, the Group also anticipates that the recent expansions in visa-free entry will open up further opportunities for outbound travel.
Sustainability continues to be a cornerstone of the Group’s long-term vision. With the introduction of its newly enhanced ESG framework, ‘Stay, Savour and Shine’, the Group remains committed to embedding sustainability across its business.
This three-pronged approach encompasses rooms, food and beverage, wellness, and how the Group engages with its colleagues, business partners, and the wider community to foster a brighter, more sustainable future for all.
For more details, please refer to the final results announcement at
https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0322/2024032200585.pdf.About Shangri-La GroupShangri-La Group is one of the world’s premier developers, owners and managers of hotel and investment properties which comprises office buildings, commercial real estate and serviced apartments/residences. The Group’s other principal activities include hotel management services as well as property development for sale. It currently owns and/or manages over 100 hotels globally in 76 destinations under the Shangri-La, Kerry, JEN by Shangri-La and Traders brands. Prominently positioned in Asia, the Group has a substantial pipeline of upcoming hotel and mixed-use development projects in Australia, Chinese Mainland, Cambodia, and Japan.
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