Dairy Farm International Hldgs Ltd Interim Management Statement (6249X)
05 Mayo 2021 - 04:23AM
UK Regulatory
TIDMDFI TIDMJAR
RNS Number : 6249X
Dairy Farm International Hldgs Ltd
05 May 2021
Announcement
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
5th May 2021 - Dairy Farm International Holdings Limited today
issues its Interim Management Statement for the first quarter of
2021.
The Group's overall performance in the first quarter continued
to be significantly affected by the COVID-19 pandemic.
Like-for-like sales for the Group's Grocery Retail businesses
were lower in the first quarter than in the same period last year,
as customer buying behaviours normalised relative to the high sales
base in 2020. Profitability for the division also reduced as a
result of lower sales. Nevertheless, the Group remains encouraged
by the progress made in the transformation of the business, with
underlying profitability for the division in the first quarter of
2021 significantly above profits achieved in the more comparable
first quarter of 2019. Within Southeast Asia, performance in
Indonesia continued to be the most severely impacted by the
pandemic, given the country's ongoing imposition of restrictions on
movement and the consequent reduced traffic into hypermarkets and
malls.
The Group's Convenience business reported improved like-for-like
sales performance, driven primarily by strong growth in Southern
China in the quarter, compared with the severe lockdown
restrictions experienced in the first quarter of last year.
Profitability also improved as a result of stronger sales
performance.
Both the sales and profit performance of the Group's Health and
Beauty businesses in the first quarter continued to be impacted by
the ongoing effect of the pandemic. The lack of custom from
tourists in Hong Kong as border closures remained in place had the
greatest adverse effect in North Asia. In Southeast Asia, the
primary impact on sales and profitability resulted from the ongoing
reduction in footfall in the malls where many of the Guardian
outlets are located.
Sales in the Home Furnishings business were higher than the
equivalent period last year. Like-for-like sales growth was in line
with last year, despite global shipping container shortages
impacting stock availability. The full year impact of new stores
opened in the prior year, as well as continued strong e-commerce
growth, supported total sales growth. Overall profitability for the
Home Furnishings business reduced due to a combination of higher
pre-opening expenses for new store openings and reduced
profitability in Indonesia where like-for-like sales were affected
by the ongoing impact of the pandemic.
The profitability of Maxim's, the Group's 50%-owned associate,
improved in the first quarter relative to the same period last
year. Nevertheless, revenues continued to be affected by government
restrictions on opening hours and restaurant capacity. Yonghui's
operating performance in the first quarter was impacted by a high
sales base from the prior year, as well as reduced gross profit
margins due to rising competition. Robinsons Retail's performance
in the first quarter was affected by ongoing government-imposed
restrictions on movement, which particularly impacted discretionary
retail banners. Sales for Robinsons Retail's supermarket segment
were also impacted by a high base in 2020.
Despite the challenges posed by COVID-19, the Group made good
progress in executing its key transformation initiatives. The
relaunch of the Giant brand in Malaysia was executed in over 50
stores in the quarter, and included the addition of over 2,000 new
items throughout the store. During the quarter, the third IKEA
store was opened in Indonesia, marking another milestone for the
growth of IKEA in the country. In addition, Yuu Rewards in Hong
Kong continues to grow and now has around 3.3 million members, with
over 60 billion points issued. 32 Maxim's brands have now been
added to the programme.
While we expect continued pressure on year-over-year
comparatives in sales and profitability, reflecting normalisation
of buying patterns in grocery retail and reduced levels of
government support, together with uncertainty surrounding the
relaxation of travel restrictions in a number of markets, we remain
confident that the transformation is delivering sustainable
improvements to the business over time, which is assisting in
offsetting some of the adverse effects on the business of external
factors and will drive medium- to long-term growth.
Dairy Farm is a leading pan-Asian retailer. The Group, together
with its associates and joint ventures, operates around 10,000
outlets - including supermarkets, hypermarkets, convenience stores,
health and beauty stores, home furnishings stores and restaurants -
employing some 220,000 people, and had total sales in 2020
exceeding US$28 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
Marjorie Law (852) 2299 1788
Brunswick Group Limited
Sunitha Chalam (852) 3512 5050
This and other Group announcements can be accessed through the
Internet at 'www.dairyfarmgroup.com'.
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