Dairy Farm International Hldgs Ltd Interim Management Statement (6294S)
November 07 2019 - 4:21AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 6294S
Dairy Farm International Hldgs Ltd
07 November 2019
To: Business Editor For immediate release
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
DAIRY FARM INTERNATIONAL HOLDINGS LIMITED
Interim Management Statement
7th November 2019 - Dairy Farm International Holdings Limited
has today issued its Interim Management Statement for the third
quarter of 2019.
Combined sales including 100% of associates and joint ventures
for the period were ahead of the comparable period in 2018,
primarily due to the investment in Robinsons Retail in late 2018.
Sales by the Group's subsidiaries in the quarter declined, as
reported revenue for Hypermarkets and Supermarkets was impacted by
the Southeast Asia store optimisation plan and the divestment of
the Rustan Supercenters business. Convenience stores and Home
Furnishings continued to perform well, with sales ahead of the same
period last year. While Southeast Asia Health and Beauty sales
improved, overall Health and Beauty revenue weakened as performance
was impacted by difficult market conditions in Hong Kong.
Profits from Supermarkets and Hypermarkets increased in the
quarter, driven by an improvement in Southeast Asia as the store
optimisation plan delivered enhanced quality and operating
standards. While the turnaround of the Southeast Asian businesses
remains at an early stage, there are encouraging signs of
improvement. The Group continues to invest in and grow its
capabilities in Southeast Asia in line with the multi-year
transformation plan. While sales in North Asia were ahead of last
year, profits were impacted by rental and labour cost
pressures.
The Group's Convenience store sales in the quarter were ahead of
last year, with profitability modestly lower due to ongoing
investment in new stores as well as rental and labour cost
pressures.
In Health and Beauty, Mannings' sales and profits have been
significantly impacted by the ongoing social unrest in Hong Kong.
Guardian in Southeast Asia, however, delivered an encouraging
performance, with solid sales growth, particularly in Indonesia.
The Group continues to invest in and grow its Health and Beauty
network across Southeast Asia.
The Home Furnishings business reported solid sales growth for
the quarter, as strong growth in Taiwan and Indonesia offset a
lower performance in Hong Kong due to weak consumer sentiment.
Profitability continued to be impacted by the increased cost of
goods compared with last year and pre-opening expenses for stores
under development. IKEA's e-commerce operations continue to grow,
with positive results in all markets as improvements are made to
website functionality.
In respect of the Group's associates, Maxim's performance during
the third quarter has also been impacted by the ongoing social
unrest in Hong Kong, while Yonghui reported strong underlying
growth in profitability. The Group's results also continued to
benefit from its share of results from the 20% interest in
Robinsons Retail acquired in November last year.
For the full year, while the Group is seeing benefits from its
transformation programme, these are expected to continue to be more
than offset by weak trading conditions in several of its Hong Kong
businesses. The Group's full year results will also be affected by
the adoption of the new lease accounting standard, IFRS 16.
Nonetheless, Dairy Farm remains firmly focused on its multi-year
strategic transformation to deliver long-term improvements to the
business.
Dairy Farm is a leading pan-Asian retailer. The Group, together
with its associates and joint ventures, operates over 10,000
outlets - including supermarkets, hypermarkets, convenience stores,
health and beauty stores, home furnishings stores and restaurants -
employing over 230,000 people, and had total sales in 2018
exceeding US$21 billion. Dairy Farm International Holdings Limited
is incorporated in Bermuda and has a standard listing on the London
Stock Exchange, with secondary listings in Bermuda and Singapore.
It is a member of the Jardine Matheson Group.
- end -
For further information, please contact:
Dairy Farm Management Services Limited
Kirsten Molyneux (852) 2299 1884
Sindy Wong (852) 2299 3011
Brunswick Group Limited
Annabel Arthur (852) 3512 5075
This and other Group announcements can be accessed through the
Internet at 'www.dairyfarmgroup.com'.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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