REG - DFI Retail Group Jardine Matheson Hdg - INTERIM MANAGEMENT STATEMENT

DFI Retail groupAnnouncement

23/05/2024 10:45

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RNS Number : 6661P  DFI Retail Group Holdings Ltd  23 May 2024

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

 

23rd May 2024 - DFI Retail Group Holdings Limited today issues its Interim
Management Statement for the first quarter of 2024.

 

The Group's underlying subsidiary revenues (excluding the impact of
divestments) increased by 2% in the first quarter, compared to the same period
in 2023.  The Group's underlying profits grew by over 60% in the period,
driven primarily by improved profit performance across its subsidiaries.

 

The Food Retail division reported like-for-like sales slightly behind the
first quarter of 2023. Within North Asia, like-for-like sales continued to be
impacted by reduced consumer spending on groceries and increased outbound
travel.  Despite the challenges it faced, Wellcome continued to see good
market share growth.  In Southeast Asia, like-for-like sales marginally
increased relative to the same period last year, supported by good festive
trading performance, despite a slow start to the year.  Overall PBIT for the
Food Retail division improved compared to the previous year, driven by
disciplined margin and cost control.

 

Like-for-like sales for the Group's Convenience division in the first quarter
increased compared to the same period last year, supported by good performance
in Macau, South China and Singapore.  7-Eleven Hong Kong's like-for-like
sales in the first quarter were adversely impacted by reduced cigarette
demand.  Profits for the division more than doubled in the first quarter,
however, due to a combination of strong like-for-like sales performance,
particularly in non-cigarette categories, and sales mix shift towards higher
margin products.

 

The Health and Beauty division reported high-single-digit like-for-like sales
growth in the first quarter.  In North Asia, tourism recovery in the first
quarter relative to the same period last year, together with strong in-store
execution, underpinned good sales performance.  In Southeast Asia, Guardian
reported strong like-for-like performance across key markets, particularly
Malaysia and Indonesia.  Underlying PBIT for the division increased by around
20% in the quarter, driven by strong like-for-like sales growth, improved
gross margins and ongoing disciplined cost control.

 

Home Furnishings reported significantly lower underlying profit, due to the
challenging macroeconomic environment.  The Hong Kong and Indonesia markets
were negatively affected by high-interest rates, a dampened housing market and
higher levels of outbound travel.  In Taiwan, however, IKEA reported solid
like-for-like sales performance.  In the face of these challenges, IKEA
continues to work hard to drive operating efficiencies and manage costs.

 

Maxim's, the Group's 50%-owned associate, reported sales and profits broadly
in line with the prior year.  Maxim's restaurant performance was adversely
affected by cautious consumer sentiment and increased outbound travel in Hong
Kong.  Cost-control initiatives in the first quarter, however, offset the
weaker performance of restaurants.

 

Yonghui's sales performance in the quarter was impacted by softer consumer
sentiment. Yonghui's profit growth in local currency terms was underpinned by
disciplined cost management.  Robinsons Retail's reported profit was
supported by one-off gains following the BPI-Robinsons Bank merger, which was
completed earlier in the year.  Robinsons saw like-for-like sales growth
driven primarily by the Food and Drugstores segments, and reported
low-single-digit operating income growth.

 

On 22nd April 2024, the Group announced that it had agreed to divest its Hero
Supermarket business unit in Indonesia.  The transaction is forecast to be
slightly earnings accretive to the Group and is expected to complete by the
end of June.  DFI's operations in Indonesia will fully pivot to the Guardian
and IKEA businesses after completion.  The Company remains confident in the
long-term prospects of these two businesses and the opportunity for further
market share growth.

 

The Group confirms its guidance in analyst presentation published on 8th March
2024 and continues to expect underlying profit attributable to shareholders
for the 2024 full year to be between US$180 million and US$220 million.
Although the Group has reported strong profit growth in the first quarter, the
growth trend is expected to decelerate over the remainder of the year,
reflecting the Group's stronger performance in the comparable period last
year.

 

DFI Retail Group is a leading pan-Asian retailer.  The Group, together with
its associates and joint ventures, operates some 11,000 outlets with more than
5,000 stores operated by subsidiaries, employing some 213,000 people with some
48,000 people employed by subsidiaries, and had total annual revenue in 2023
exceeding US$26 billion and reported revenue of US$9 billion.  The Group
(including associates and joint ventures) operates under a number of
well-known brands across Food, Convenience, Health and Beauty, Home
Furnishings, restaurants and other retailing.  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
 Karen Chan (Investor Relations)                         (852) 2299 1380
 Christine Chung (Corporate Communications and Affairs)  (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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