ASIA: Select H1 Results (Dairy Farm, Hero Supermarket, Sheng Siong)

Hong Kong’s Dairy Farm International, Indonesia’s PT Hero Supermarket, and Singapore’s Sheng Siong groups all reported solid growth for their fiscal first halves, despite tough conditions.

For the six months to 30 June, Dairy Farm saw its sales – excluding joint ventures and associates grow by 2% on a constant-currency basis to US$5.56bn (-1% reported basis).  The group said it was impacted by the closure of several underperforming outlets in Singapore and Indonesia.  Underlying net profit was up 5% to $199m on a constant-currency basis (+3% reported), helped by the addition of figures from Yonghui.

The group’s Food Division reported 2% growth at its supermarkets and hypermarkets, while its convenience stores also performed well.  The Health and Beauty Division saw sales improved in Hong Kong, although they declined in Malaysia and Macau. And in Home Furnishings, IKEA reported growth across all markets.

The Hero Supermarket group saw its revenue decline by 1% to 7.2bn rupiah, while it also swung to an operating profit of 27bn rupiah, from a loss of 3bn rupiah last year.

The Food business said it recorded strong like-for-like sales, helped by its increased focus on fresh produce. However, general merchandise sales continued to be weak, affecting overall results.  The Health & Beauty division also recorded growth in LFL sales, despite the closure of some stores. And the IKEA business continued to perform well.

Finally, Sheng Siong saw its revenue for the six months to end-June grow by 5.3% to S$397.3bn, with pre-tax profit up 14.8% to S$38.1bn. The chain was helped by the expansion of it store network, which helped it offset rising costs. Overall like-for-like sales grew by 0.9% for the period.

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