Dairy Farm's H1 net profit drops 35% on Covid-19 impact

Published Wed, Jul 29, 2020 · 02:56 PM

DAIRY Farm International on Wednesday posted a 35-per-cent drop in net profit to US$115 million, despite a 6 per cent increase in total sales to US$14.5 million.

It attributed its earnings fall to the reduced contributions from its health and beauty segment, Maxim's and convenience stores as a result of Covid-19, the curbs imposed by governments to contain the pandemic, and the impact of the contagion on customer behaviours.

There were, however, strong performances from the group's grocery-retail and home-furnishings businesses, it said. Total sales had risen due to higher contributions from Robinsons Retail and Chinese supermarket operator Yonghui.

Sales by the group's subsidiaries in the first half were lower by 9 per cent, primarily due to the annualised impact of store closures in 2019 under the group's space optimisation plan in South-east Asia, as well as reduced revenues from convenience stores and health and beauty as a result of pandemic-related restrictions.

An interim dividend of 5 US cents per share has been declared, 23 per cent lower than the 2019 interim dividend of 6.5 US cents.

It will be payable on Oct 14.