TIDMDFI TIDMJAR
RNS Number : 9935F
DFI Retail Group Holdings Ltd
10 November 2022
Announcement
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
DFI RETAIL GROUP HOLDINGS LIMITED
Interim Management Statement
10th November 2022 - DFI Retail Group Holdings Limited today
issues its Interim Management Statement for the third quarter of
2022.
The Group's underlying profitability improved in the third
quarter, compared to the first half of the year. Within
subsidiaries, Health and Beauty, Convenience and IKEA businesses
all benefitted from stronger like-for-like sales growth in the
third quarter compared to the first half and higher profits than in
the equivalent period last year. The performance of these three
divisions, however, was broadly offset by lower profitability in
Grocery Retail.
Overall Grocery Retail like-for-like sales in the third quarter
of 2021 were adversely impacted by the annualisation of movement
restrictions which supported spikes in demand the prior year.
Like-for-like sales in North Asia were flat compared with the prior
year, while sales performance in Southeast Asia was impacted by a
reduction in eating-at-home resulting from the easing of movement
restrictions; store renovation disruptions in Singapore; and weaker
consumer sentiment due to inflationary pressures. Overall
profitability for Grocery Retail in the third quarter of the year
continued to be impacted by the higher cost of goods sold;
increasing operating costs (particularly electricity costs); and
e-commerce investment costs.
The Group's Convenience business reported improving
like-for-like sales over the course of the year, and like-for-like
sales growth was higher in the third quarter relative to the first
half of the year. Like-for-like sales performance in Hong Kong,
Macau and Singapore improved as COVID-related movement restrictions
were relaxed or removed. In South China, however, sales continued
to be impacted by COVID-related restrictions and lockdowns. As a
result of improving sales momentum, overall profitability for the
division in the third quarter increased compared to the same period
last year.
Health and Beauty reported double-digit like-for-like sales
growth in the third quarter. Mannings Hong Kong saw strong sales
performance, driven by effective in-store execution and market
share gains. Guardian also reported strong like-for-like sales
recovery, particularly in Malaysia and Indonesia. Underlying
profitability for the division increased significantly in the third
quarter compared to the same period last year, underpinned by a
recovery in customer traffic, effective promotion management and
cost control.
The performance of the Home Furnishings division in the third
quarter also benefitted from increasing sales momentum.
Like-for-like sales growth improved in the third quarter compared
to the first half, as government restrictions eased, particularly
in Indonesia. Stock availability also improved as global supply
chain constraints reduced in the third quarter. Profit in the third
quarter also increased relative to the equivalent period last year,
due to stronger sales performance and cost control.
The profitability of Maxim's, the Group's 50%-owned associate,
improved significantly in the third quarter compared to the first
half, supported by improved restaurant patronage and good mooncake
sales. Profitability was broadly in line with the prior year.
Yonghui reported reduced net underlying losses in the third quarter
compared to the same period last year, although its operations
continued to be impacted by COVID-related restrictions and
lockdowns. Robinsons Retail reported double-digit like-for-like
sales growth in the third quarter compared to the same period last
year, driven by a strong recovery in the department store,
convenience store, DIY and specialty segments, with customer
traffic increasing as restrictions eased.
The Group continues to execute its key transformation and growth
initiatives to support its key strategic priorities. The yuu
Rewards loyalty programme launched in Singapore in October 2022,
with the Group entering partnerships with minden.ai, a tech venture
founded by Temasek, as well as BreadTalk Group, DBS Bank, PAssion
Card, Mandai Wildlife Group and Singtel. The coalition loyalty
programme unites some of Singapore's most popular brands, offering
customers an effortless way to earn rewards on everyday purchases
across over 1,000 outlets.
While the Group has been encouraged by improving financial
performance in the third quarter of the year compared to the first
half, ongoing movement restrictions, border controls and
inflationary pressures continue to have a significant adverse
effect on the Group's businesses. In addition, planned investments
in digital capacity will continue to impact short-term
profitability. The Group expects profits in the second half to
significantly improve relative to the first half but, nevertheless,
to be below those in the comparable period last year. Accordingly,
full year profits are expected to be materially lower than in
2021.
The Group remains confident, however, in the strength of the
Group's banners and believes that the Group's multi-year
transformation and investments to advance digital capabilities and
improve stores and operating standards will deliver sustainable
growth as the impact of the pandemic recedes.
DFI Retail Group is a leading pan-Asian retailer. The Group,
together with its associates and joint ventures, operates over
10,300 outlets - including supermarkets, hypermarkets, convenience
stores, health and beauty stores, home furnishings stores and
restaurants - employing over 220,000 people, and had total sales in
2021 exceeding US$27 billion. The Group's parent company, DFI
Retail Group Holdings Limited, is incorporated in Bermuda and has a
primary listing in the standard segment of the London Stock
Exchange, with secondary listings in Bermuda and Singapore. DFI
Retail Group is a member of the Jardine Matheson Group.
- end -
For further information, please contact:
DFI Retail Group Management Services
Limited
Christine Chung (852) 2299 1056
Brunswick Group Limited
William Brocklehurst (852) 5685 9881
This and other Group announcements can be accessed through the
Internet at 'www.DFIretailgroup.com'.
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END
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