Dairy Farm's core earnings up 6% to US$480m on lower opex

Slightly ahead of market's forecast.

According to DBS, Dairy Farm's FY13’s core earnings of US$480m (+6% y-o-y) was slightly ahead of its expectations due to lower than expected opex.

Here's more:

Otherwise, revenue and gross margins were in line with expectations. FY13 earnings were driven by store expansion and generally better SSSG. While underlying profit in the Food Business declined, Health & Beauty, Home Furnishing and Restaurant segments reported record profits.

Balance sheet improved with a stronger net cash position at US$638m. Final DPS of 16.50 UScents was declared, bringing total DPS for FY13 to 23 UScents.

Growth focused on attractive markets in Asia.
Management continues to be Asia-focused, and will expand to attractive markets and business segments while seeking to attain better operating efficiencies.

Going forward, we believe it will increase store count mainly in Indonesia and China. It will also invest in IT systems to enhance efficiencies.

FY14F earnings is revised by +14%. We lift EBIT margins from 4.4% to 5.1% as our opex and margin estimates were conservative previously. We now expect pre-exceptional earnings to grow at 9% this year, largely driven by store expansion, SSSG and margin expansion on better sales mix.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. 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