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.