Dairy Farm's accounting mishap turned in US$59m underlying profit

Just in the nick of time.

According to Nomura, Dairy Farm's sales, including 100% of associates and JVs, were up by 10% to US$11.5bn in 2012. Underlying profit for the year was US$447mn vs US$474mn in 2011.

The 2012 figure reflects the reversal from underlying profit of US$59mn of supplier income in Malaysia that had been incorrectly recognised over the last few years.

Adjusted underlying profit, which excludes the effects of the reversed supplier income, rose from US$450mn in 2011 to US$506mn in 2012, a 13% increase.

Here's more from Nomura:

Underlying EPS were US¢33.14, a 6% decline, or if the effect of the reversal of the supplier income is excluded, US¢37.48, an increase of 13%.

The profit attributable to shareholders in 2012, after taking into consideration the effect of the reversal, was US$450mn, including a non-trading gain of US$3mn arising mainly from the disposal of retail properties in Singapore.

The comparable results in 2011 benefited from a non-trading gain of US$10mn.

DF’s financial position remains healthy with net cash at the end-2012 up US$55mn at US$521mn. This increase includes the net proceeds of US$139mn arising from the placement of shares in PT Hero (HERO IJ, not rated), and is after allowing for higher dividends, capital expenditure of US$358mn for organic growth of the business, and US$144mn for investments.

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