ASIA: Mixed 2012 results at retailer Dairy Farm

By Michelle Russell | 8 March 2013

Net profit slides 7%
Adjusted earnings grow 13%
Net sales up 7%

Pan-Asian retailer Dairy Farm International Holdings booked a drop in earnings in 2012 but maintains it is in a "strong financial position" for 2013.

Net profit slid 7% to US$450m in the 12 months to the end of December. The drop was due mainly to a reversal of certain income incorrectly accrued in Malaysia in prior years, it said. Adjusted underlying profit was up 13% to $506m.

Chairman Simon Keswick, who will step down from the board at the firm's AGM on 15 May, said the company recorded "strong" trading performances in Hong Kong and Indonesia. Operating results from Singapore, however, were "slightly below last year", it said, in the face of increased costs and "sluggish economic conditions".

Net sales in the period amounted to $9.8bn, a 7% increase on the prior year, while the firm said it recorded "healthy" like-for-like sales growth in most of its major businesses.

Show the press release

To: Business Editor 7th March 2013

For immediate release

The following announcement was issued today to a Regulatory Information Service approved by the Financial Services Authority in the United Kingdom.

DAIRY FARM INTERNATIONAL HOLDINGS LIMITED

2012 PRELIMINARY ANNOUNCEMENT OF RESULTS

Highlights

• Strong trading performances in Hong Kong and Indonesia

• Reported earnings decline after reversal of certain income incorrectly accrued in Malaysia

in prior years

• Adjusted underlying profit up 13% to US$506 million

• Full-year dividend up 10%

“Good performances were seen in many of the Group’s operations in 2012, although the reported underlying profit was affected by the reversal of supplier income in Giant Malaysia. While trading conditions remain challenging in some areas, Dairy Farm’s prospects for 2013 are underpinned by its market leading businesses and strong financial position.”

Simon Keswick, Chairman

7th March 2013

Original source: Dairy Farm International Holdings

Sectors: Emerging markets, Financials, Retail