Dairy Farm International Hldgs Ltd Interim Management Statement (3938Y)
May 08 2019 - 7:32AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 3938Y
Dairy Farm International Hldgs Ltd
08 May 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
8th May 2019 - Dairy Farm International Holdings Limited has
today issued its Interim Management Statement for the first quarter
of 2019.
Sales for the period were ahead of the comparable period in
2018, with four of the Group's five formats continuing to perform
well despite mixed market conditions. Underlying earnings were also
higher than the first quarter of last year, as restated following
the adoption of the new lease accounting standard.
There was a strong performance from the Health and Beauty
business as well as from key associates Maxim's, Yonghui and
Robinsons Retail, which offset the continuing softness in the Food
business. IKEA continued to perform in line with expectations,
although its contribution to the Group was impacted by higher
pre-opening costs than in the first quarter of 2018.
Although the Group's Supermarkets and Hypermarkets business
continued to face challenges, implementation of the multi-year
transformation plan is now in progress, with actions being taken to
improve performance over the medium term. Sales in North Asia were
broadly in line with last year, with positive sales growth in Hong
Kong and Macau offset by weakness in Taiwan. Profit performance in
the quarter was impacted by rising rent and labour costs in Hong
Kong.
Sales in Southeast Asia were impacted by the launch of a store
consolidation plan in the region, with profits also lower. The plan
is designed to improve space productivity and underlying
profitability over time. The Group's Convenience store business
achieved higher sales in all markets, but with slower profit growth
as a result of additional costs incurred in support of a stronger
store network expansion.
Sales and profits growth continued for the Health and Beauty
business in North Asia, with total tourist traffic remaining
strong. Southeast Asia also delivered a solid performance with
encouraging sales and profits growth in the quarter, particularly
in Malaysia and Indonesia.
The Home Furnishings business reported higher sales in all
markets, but profitability was lower primarily due to the increased
cost of goods compared with last year and the pre-opening expenses
incurred for new stores under development.
Maxim's and Yonghui delivered strong sales growth for the period
and their contributions to the Group's profit were ahead of the
comparable period in 2018. The Group's results also benefitted from
its share of results from the 20% interest in Robinsons Retail it
acquired in November last year.
Dairy Farm remains firmly focused on its multi-year strategic
transformation to deliver sustainable improvements to the
business.
Dairy Farm is a leading pan-Asian retailer. The Group, together
with its associates and joint ventures, operates over 9,700 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
David Ashton (852) 3512 5063
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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