Dairy Farm posts "disappointing" 2017 result, looks to review food businesses in SEA
DAIRY Farm International Holdings reported a net profit attributable to shareholders of US$403.5 million (S$531.2 million) for the year ended Dec 31, 2017, down from US$469.0 million the year before.
The retail company said its "disappointing" showing for 2017 was due to "positive performances in most of the group's formats and key associates (being) offset by weakness in the supermarket and hypermarket businesses, largely in Southeast Asia".
Dairy Farm's profit was also affected by US$64 million in business change costs, which were incurred principally because of the closure of underperforming stores and stock clearance in its food division.
The group's total sales were up 7 per cent year-on-year, to US$21.8 billion, thanks mainly to the strong growth from its Shanghai-listed hypermarket and supermarket unit Yonghui Superstores and its Hong Kong Maxim's outlets.
Its earnings per share was down to 29.82 US cents, from 34.68 US cents.
Chairman Ben Keswick said, "After a disappointing year in 2017 for our food businesses in Southeast Asia, actions are being taken to improve their long-term performance.
"A strategic review is underway to determine the actions necessary to re-establish the competitive positions of these businesses and turn around their financial performance."
Dairy Farm shares finished Thursday US$0.05 up at US$8.22.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Indian billionaire Birla said to mull US$1.2 billion in Novelis IPO
Apple’s China iPhone shipments soar 12% in March after discounts
Indian banks to step up IT spends as regulatory scrutiny rises
Puma returns to sales growth in Americas despite ‘volatile’ market
Shell to sell Singapore oil refinery, chemicals assets to Glencore joint venture
AstraZeneca lifts FTSE 100 to record high