REG - DFI Retail Group Jardine Matheson Hdg - INTERIM MANAGEMENT STATEMENT

DFI Retail groupAnnouncement

09/11/2023 10:00

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RNS Number : 9437S  DFI Retail Group Holdings Ltd  09 November 2023

Announcement

 

The following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United Kingdom.

 

DFI RETAIL GROUP HOLDINGS LIMITED

Interim Management Statement

 

9th November 2023 - DFI Retail Group Holdings Limited today issues its Interim
Management Statement for the third quarter of 2023.

 

The Group's underlying profits in the third quarter of 2023 grew by over 80%
compared to the third quarter of 2022, with strong improvements from both
subsidiaries and associates.  The Group's Health and Beauty and Convenience
divisions continued to report strong underlying PBIT growth, which more than
offset lower results in Grocery Retail and IKEA.

 

Like-for-like sales and profitability for the Group's North Asian Grocery
business were in line with the prior year, despite a reduction in home cooking
demand and increased consumer spend on other activities such as travel.
Southeast Asia Grocery sales performance continued to be adversely affected by
intense competition and weakening consumer sentiment caused by rising cost of
living pressures.  The overall PBIT for the Grocery Retail division reduced
marginally as a result, despite strong cost control initiatives.

 

The Group's Convenience division reported strong like-for-like sales growth in
the quarter.  7-Eleven Hong Kong reported good sales momentum, and Macau,
Southern China and Singapore continued to see strong growth.  The Convenience
division saw a double-digit increase in underlying PBIT compared to the same
period last year.

 

The Health and Beauty division reported strong sales and underlying PBIT
growth in the third quarter, compared to the same period last year.  In North
Asia, Mannings saw double-digit like-for-like sales growth underpinned by
recovering tourist numbers and ongoing market share gains.  Mannings'
underlying PBIT increased substantially due to both strong sales performance
and operating leverage.  In Southeast Asia, Guardian reported positive
like-for-like sales, with strong performance particularly in Indonesia.
Guardian also reported good growth in underlying PBIT compared to the same
period last year.

 

Home Furnishings reported a decline in like-for-like sales compared to the
prior year as the business continued to be impacted by reduced demand.
Performance in Hong Kong and Taiwan was impacted by increased consumer spend
on other activities such as travel, a softening in property market sentiment
and some extreme weather events.  Indonesia, however, reported some sales
recovery in the quarter.  IKEA's underlying PBIT in the quarter reduced,
however, as a result of lower underlying sales, although these were partially
offset by disciplined cost control.

 

Maxim's, the Group's 50%-owned associate, reported double-digit year-on-year
revenue growth, driven by rising restaurant patronage and solid mooncake
sales.  Maxim's also reported double-digit profit growth in the quarter.

 

Yonghui's sales and underlying PBIT were adversely affected by intense
competition.  Despite this, reported net underlying losses reduced in the
third quarter compared to prior year, supported by higher gross margins and
cost control initiatives.  Robinsons Retail reported strong like-for-like
sales growth in the third quarter compared to the same period last year driven
by strong performances from the supermarket, drugstores, department stores,
convenience stores and specialty segments.

 

Further to the Company's announcement on 2nd May 2023, the Group welcomes the
assumption by Scott Price of the role of Group Chief Executive with effect
from 1st August 2023.  Scott is an experienced senior business executive with
25 years' international experience, of which 19 years was spent in Asia,
spanning the retail, logistics and consumer packaged goods sectors.

 

While the Group has been encouraged by the strong recovery in underlying
profit in the third quarter, a substantially lower growth rate is anticipated
in the final quarter of the year against a strong comparable in the prior
year, in particular in the Health and Beauty business which was boosted by
robust demand for pandemic related health products in the fourth quarter of
2022.

 

DFI Retail Group is a leading pan-Asian retailer.  The Group, together with
its associates and joint ventures, operates over 10,700 outlets, employing
some 218,000 people, and had total annual revenue in 2022 exceeding US$27
billion.  The Group (including associates and joint ventures) operates under
a number of well-known brands across food, health and beauty, 7-Eleven, IKEA,
yuu Rewards, restaurants and other retailing.  The Group's parent company,
DFI Retail Group Holdings Limited, is incorporated in Bermuda and has a
primary listing in the standard segment of the London Stock Exchange, with
secondary listings in Bermuda and Singapore.  DFI Retail Group is a member of
the Jardine Matheson Group.

 

 

- end -

 

 

For further information, please contact:

 

 DFI Retail Group Management Services Limited
 Christine Chung                               (852) 2299 1056

 Brunswick Group Limited
 William Brocklehurst                          (852) 5685 9881

 

This and other Group announcements can be accessed through the Internet at
'www.DFIretailgroup.com'.

 

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