Leading pan-Asian retailer Dairy Farm International, which is a part of the Jardine Matheson group, has reported that its overall performance in the 1QFY2021 continues to remain “significantly affected” due to Covid-19.
Like-for-like sales for the group’s Grocery Retail businesses were lower in the 1QFY2021 as buying behaviours normalised in comparison to the high base in 2020.
As a result of the lower sales, profitability for the division stood lower y-o-y.
The group says it remains “encouraged” by the progress made in the transformation of the business, and expects to record underlying profitability in the 1QFY2021.
Within the Southeast Asia region, its performance in Indonesia remains the most severely impacted due to the pandemic.
The group’s Convenience business reported growth in its like-for-like sales performance, driven by strong growth in Southern China.
Profitability for the segment improved due to the higher sales performance.
SEE:CGS-CIMB upgrades Dairy Farm to 'hold', as its main markets emerge from Covid-19-induced lockdowns
The group’s Health and Beauty businesses says its sales and profit performance remain negatively impacted due to the pandemic due to the lack of tourists in Hong Kong, and the reduction in footfall in malls in Southeast Asia.
Sales in the Home Furnishings business stood higher y-o-y. Like-for-like sales growth were “in line” with the year before despite global shipping container shortages impacting stock availability.
The full-year impact of new stores opened in the year before, as well as continued strong e-commerce growth supported total sales growth.
Maxim’s profitability improved y-o-y in the 1QFY2021. Maxim is the group’s 50%-owned associate. That said, revenues continue to be affected by government restrictions on opening hours and restaurant capacity.
Yonghui’s operating performance in the 1QFY2021 was impacted by a high base in 2020 as well as reduced gross profit margins (GPM) due to rising competition.
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Robinsons Retail’s performance remained impacted in the 1QFY2021 on movement restrictions, and due to a high base in 2020.
In its statement on May 5, the group says it “remains confident” that its key transformation initiatives are “delivering sustainable improvements to the business over time”.
Shares in Dairy Farm closed 5 US cents lower or 1.1% down at US$4.34 on May 5.
