Mixed Q3 results for Dairy Farm

Date : 14 November 2018

Dairy Farm has reported mixed results for Q3, pulled down by challenges in the food division.

Strong growth in health and beauty

The retailer reported strong sales and profit gains in Hong Kong and Macau. The retailer also saw improvement in its Southeast Asian businesses, especially in Malaysia and Indonesia.

Food business profits decline

Both sales and profits were down in several markets including Singapore, Malaysia and Indonesia. In China, Yonghui reported strong sales growth but lowered profits due to higher investments in stores. 

Southeast Asian business being revitalised 

Dairy Farm has been closing loss making stores in Singapore, Malaysia and Indonesia. The retailer has just announced the closing of a Giant hypermarket store in VivoCity in Singapore next year. Three other Giant outlets are under review for lease renewals and store performance.

We understand that plans for product range, space management, pricing strategy and consolidated sourcing are being implemented in the region. This includes sharing suppliers and accessing Yonghui's suppliers for fresh food its stores in other markets. We believe that the focus on operations and its efforts in collaboration of suppliers across its banners will support its growth going forward.  

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