Dairy Farm International Hldgs Ltd Interim Management Statement (7618G)
November 08 2018 - 3:10AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 7618G
Dairy Farm International Hldgs Ltd
08 November 2018
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 November 2018 - Dairy Farm International Holdings Limited
has today issued an Interim Management Statement for the third
quarter of 2018.
Dairy Farm's businesses produced mixed results in the period.
Although there was a strong performance in Health and Beauty and
good results from Home Furnishings and Restaurants, the performance
of the Hong Kong Food business has softened and the Food businesses
across Southeast Asia continue to face significant challenges.
These challenges are expected to continue for the remainder of the
year and the Group's full year results are also expected to be
impacted by increasing costs from its continuing programme of
investment in technology, supply chain infrastructure, stores and
people in order to improve the long-term performance of the
business.
In North Asia, sales from the Food businesses were slightly
ahead of the same period last year, but profits were lower as a
result of weakening margins and continued cost pressures,
particularly from increased rents. The Health and Beauty businesses
in Hong Kong and Macau, however, delivered strong sales and profit
growth.
In Southeast Asia, the Group's Food businesses continued to face
challenges. Sales and profits decreased further in Singapore and
Malaysia. Sales also decreased in Indonesia, but, as a result of
management action, losses reduced compared to the same period last
year. The Philippines Food business showed good sales growth,
benefitting from the opening of several new stores, but profit was
slightly behind the prior year due to operating costs of these new
stores. There was continuing good sales and profit improvement in
the Group's Health and Beauty businesses, notably in Malaysia and
Indonesia.
IKEA's sales and profits were ahead of last year in Taiwan and
Indonesia. In Hong Kong, sales were higher, supported by the new
store which opened last year; however profits were lower as a
result of higher operating costs.
Maxim's delivered another record breaking mooncake sales
performance during Mid-Autumn Festival, which was earlier than last
year, and helped drive sales and profit higher during the
period.
Yonghui reported strong sales growth in the quarter but profit
was lower than the prior year due to investment in new formats and
the additional costs of the new employee incentive scheme.
Approval was received from the Philippines Competition
Commission in August for the combination of Dairy Farm's Food
business in the Philippines with Robinsons Retail Holdings, Inc.
Completion is expected to take place in the coming weeks.
Dairy Farm announced in early October that it has agreed to
acquire the remaining 51% interest in Rose Pharmacy in the
Philippines, which is now subject to regulatory approvals. Upon
completion of the transaction, Dairy Farm will hold 100% of the
company.
Dairy Farm is a leading pan-Asian retailer. The Group, together
with its associates and joint ventures, operate over 7,400 outlets
- including supermarkets, hypermarkets, convenience stores, health
and beauty stores, home furnishings stores and restaurants -
employing over 200,000 people, and had total annual sales in 2017
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
Neil Galloway (852) 2299 1896
Brunswick Group Limited
Kirsten Molyneux (852) 3512 5053
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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