SINGAPORE (Yosefardi) – Dairy Farm International Holdings Ltd booked underlying profit of US$228 million for six months ended June, 2013, declined 5% from US$241 million in the same period of last year, in part due to the overstatement of supplier income that had taken place.
While sales increased 10% to US$6.03 billion from previous US$5.47 billion. The Guardian businesses in Singapore and Malaysia produced lower profits in more difficult trading environments, while Guardian in Indonesia delivered a small increase in earnings.
The Food businesses in Indonesia achieved good growth in sales, particularly the Giant hypermarkets, although the profit contribution was affected by a significant increase in the minimum wage and a weaker rupiah exchange rate.
The Group’s financial position remains healthy with net cash of US$421 million at 30th June 2013. This follows the payment of the 2012 final dividend of US$223 million and capital expenditure of US$180 million in the first half of the year.
In early July, PT Hero completed a Rp2.98 trillion (US$304 million) rights issue to support its expansion plans in Indonesia and repay debt.
Dairy Farm is a leading pan-Asian retailer. At 30th June 2013, the Group and its associates and joint ventures operated over 5,700 outlets; employed over 97,000 people and had total annual sales in 2012 exceeding US$11 billion.
In Indonesia, Dairy Farm also operates Giant and Hero Hypermarkets, convenience stores ‘Starmart’, Health and beauty stores.