Dairy Farm's biggest hypermart division under threat

Cost pressures were present year-round.

It has been a challenging year for Dairy Farm, but the F&B giant has proven its stable footing in the industry.

According to a report by RHB, Dairy Farm’s FY14 recurring profit grew 4% YoY, on a revenue growth of 6% YoY. Its overall performance was mixed, with operating profit declining substantially (9%YoY) in its biggest supermarket/hypermart division, while other units–in particular Health and Beauty (up 11% YoY)–recorded growth. It maintained a dividend of 23 US cents/share for the full-year.

During the year, all its businesses experienced cost pressures. The company was unable to mitigate this fully, particularly in Indonesia and Singapore, where we believe its sales trends were tracking lower than its respective peers.

Here’s more from RHB:

Management has taken active steps to improve this, with a revamping of its Cold Storage supermarkets in Singapore and changing the country management team for Indonesia.

Its Hong Kong and China operations were strong performers for the group in 2014.

CEO Mr Graham Allan continues to drive the initiative in improving organisation-wide business synergies. This includes ongoing investments to standardise its back-end supply chains and IT systems, while customising each market’s retail and brand offering to cater to local consumers.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia