Dairy Farm International has reported earnings of US$103 million for FY2021 ended Dec 2021, down two thirds over FY2020.
Revenue for FY2021 was down 12% to US$9.015 billion. If total sales of its joint ventures and associates are added, that’s US$27.7 billion, down 2% over FY2020.
In line with lower earnings, the company will be cutting its dividend, proposing a final dividend of 6.5 US cents, bringing the full year payout to 9.5 US cents.
In contrast, the company, which runs a portfolio of consumer brands ranging from convenience stores to supermarkets to beauty and healthcare retail, paid a total of 16.5 US cents for FY2020.
The company attributes the poorer showing to the on-going pandemic, with its key associate in China, Yonghui, a particular drag with a US$90 million share of losses booked.
Company chairman Ben Keswick calls 2021 another challenging year. However, there’s “continued progress” seen in implementing Dairy Farm’s multi-year transformation plan.
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“High levels of uncertainty remain in respect of this year, given the continuing impact of the pandemic. We remain confident, however, in the medium- to long-term growth prospects of the group,” says Keswick.
Dairy Farm shares closed on March 3 at US$2.67, up 1.14% for the day but down 8.87% year to date.
Photo: Bloomberg
