TIDMDFI TIDMJAR TIDMJDS
RNS Number : 1506L
Dairy Farm International Hldgs Ltd
28 April 2020
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
28th April 2020 - Dairy Farm International Holdings Limited has
today issued its Interim Management Statement for the first quarter
of 2020.
The Group's overall performance in the period was significantly
affected by the COVID-19 pandemic and deteriorating consumer
sentiment. While Grocery Retail benefitted from changing customer
behaviours as a result of anti-pandemic measures, as well as
operational improvements and the continuing turnaround of the
Southeast Asia business, these benefits were far outweighed by a
deterioration in the first quarter in the performance of Health and
Beauty in North Asia, Maxim's and the Group's Convenience
business.
Total subsidiary sales decreased in the period. The Group's
Grocery Retail business saw strong like-for-like sales growth.
Within North Asia, however, there was a material reduction in sales
in both the Health and Beauty and Convenience businesses,
negatively impacting subsidiary sales overall.
The various government activities restricting movement have
resulted in an increase in customers eating at home and building
pantry reserves. As a result, the Group's Grocery Retail businesses
have seen strong profit growth. In Southeast Asia, Grocery Retail
maintained its strong turnaround momentum as the Group continued to
execute its multi-year transformation plan.
The Group's Convenience businesses, however, were significantly
constrained in the period, as movement restrictions and physical
distancing requirements led to store closures in the Chinese
Mainland and reduced customer numbers in Hong Kong and
Singapore.
The performance of the North Asia Health and Beauty business was
also significantly impacted by the effects of the measures taken by
governments to counter the pandemic, as well as the continuing lack
of custom from overseas tourists, despite seeing an initial surge
in demand for personal protection products. In Southeast Asia,
where pandemic-related restrictions were initially less severe, the
business continued to perform well in the period. However,
government policies enforcing social distancing began to take
effect towards the end of the quarter in Malaysia and Indonesia
which will adversely impact trading in the second quarter.
Sales in the Home Furnishings business were higher than the
equivalent period last year. Strong e-commerce growth and the
annualisation impact of new stores opened in the prior year more
than compensated for the impact from pandemic-related measures on
customer visits. However, profitability improved in the quarter as
a result of lower pre-opening expenses and improved gross margins
resulting from lower cost of goods sold.
Maxim's, the Group's 50%-owned associate, was significantly
affected by a substantial reduction in restaurant customers and
some temporary closures of its outlets. The Group is not in a
position to comment on the performance of its other associates,
Yonghui and Robinsons Retail, as both companies have yet to publish
first quarter results.
In the coming period, the impact of COVID-19 and the measures to
contain it is continuing to affect our operations. The Group has
taken a series of steps to control costs and preserve its cash
position. These actions include reviewing capital expenditure,
implementing broader store efficiency initiatives, making
productivity improvements and ensuring careful management of
working capital.
The Group remains confident in its overall financial position.
At 31st March 2020, the Group's net debt was US$991 million with
US$456 million of liquidity, consisting of US$248 million in cash
reserves and US$208 million in unused, committed debt facilities.
In addition, the Group has secured US$400 million of new committed
banking facilities on longer tenors since the end of March. The
Group's facilities are not subject to any cash flow covenants.
The wellbeing of our employees and customers is a top priority
and we have taken a number of actions to mitigate the impact of the
pandemic, including the adoption of a range of health and safety
measures. G iven the extraordinary circumstances, we would like to
express our deep gratitude for the continuing dedication and
resolve of team members in putting customers first during these
difficult times.
While the pandemic is currently impacting the Group's operations
and performance and there is an intense focus on addressing the
immediate challenges faced by the Group, Dairy Farm remains
committed to its multi-year transformation which is delivering
sustainable improvements to the business over time, and it
continues to pursue the strategic initiatives which 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 over 10,000
outlets - including grocery retail, convenience stores, health and
beauty stores, home furnishings stores and restaurants - employing
some 230,000 people, and had total sales in 2019 exceeding US$27
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
Kirsten Molyneux (852) 2299 1884
Marjorie Law (852) 2299 1788
Brunswick Group Limited
David Ashton (852) 3512 5063
This and other Group announcements can be accessed through the
Internet at 'www.dairyfarmgroup.com'.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DOCFIFFASRITFII
(END) Dow Jones Newswires
April 28, 2020 05:28 ET (09:28 GMT)
Dfi Retail (LSE:DFI)
Historical Stock Chart
From Apr 2024 to May 2024
Dfi Retail (LSE:DFI)
Historical Stock Chart
From May 2023 to May 2024