Dairy Farm International Hldgs Ltd Interim Management Statement (2400X)
May 04 2016 - 7:32AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 2400X
Dairy Farm International Hldgs Ltd
04 May 2016
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
4th May 2016 - Dairy Farm International Holdings Limited has
today issued an Interim Management Statement for the first quarter
of 2016.
The overall trading environment during the period was little
changed from that seen in the second half of last year. Subdued
sales growth, ongoing margin challenges and unfavourable exchange
rate movements were offset by contributions from Yonghui and San
Miu as well as good performances from IKEA and Maxim's. As a
result, underlying earnings remained broadly in line with the first
quarter of last year. The Group expects similar trading conditions
over the next few months.
In the Food Division, like-for-like sales were mixed, although
positive in our key market of Hong Kong, while flat in Singapore
and negative in Malaysia and Indonesia. Margins remained under
pressure in most markets as a combination of food price deflation
and aggressive competitive activity weighed on average selling
prices. Margin pressure, further aggravated by increasing costs and
unfavourable exchange rate movements, led to a decline in operating
profits for the Division. The results did, however, benefit from
first quarter contributions from the recent investments in Yonghui
and San Miu.
In the Health and Beauty Division, like-for-like sales were flat
in Hong Kong and negative in Malaysia and Macau, although good
growth was achieved in a number of other markets. Profitability
was, however, negatively impacted by increased promotional activity
and adverse exchange rate movements.
Both the Home Furnishings and Restaurants Divisions achieved
increased sales and profits. IKEA performed well in all three of
its markets, and Maxim's maintained its consistent record of sales
and profit growth.
Net debt was little changed at the end of the first quarter. The
Group expects to complete in the near future its further US$200
million investment in Yonghui, to maintain its 19.99% shareholding
following a 10% placing by Yonghui to internet retailer JD.com.
Dairy Farm is a leading pan-Asian retailer. The Group, together
with its associates and joint ventures, operates over 6,500 outlets
- including supermarkets, hypermarkets, convenience stores, health
and beauty stores, home furnishings stores and restaurants -
employing over 180,000 people, and had total annual sales in 2015
exceeding US$17 billion. Dairy Farm International Holdings Limited
is incorporated in Bermuda and has a standard listing on the London
Stock Exchange as its primary listing, 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
Neil Galloway (852) 2299 1896
Brunswick Group Limited
Siobhan Xiaohui Zheng (852) 3512 5044
This and other Group announcements can be accessed through the
internet at 'www.dairyfarmgroup.com'.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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