Dairy Farm's profit dropped 35% to $158m in H1
Its health and beauty business suffered partly from lack of tourists in Hong Kong.
Dairy Farm's profit attributable to shareholders fell 35% YoY to $158.04m (US$115m) in H1, from $244.62m (US$178m) in H1 2019, the company announced. Combined sales climbed 6% to $20b (US$14.55b) over the same period, whilst sales by its subsidiaries declined 9% to $7.2b (US$5.24b).
The decline in the group’s overall profits were blamed on reduced contributions from its health and beauty, Maxim’s and convenience store businesses following the pandemic and its subsequent measures, as well as its impact on customer behaviours.
However, it recorded strong performances from its grocery retail and home furnishings businesses. Higher contributions from Robinsons Retail and Yonghui also boosted its combined sales.
The group’s grocery retail business reported strong sales and profit growth, underpinned by the ongoing execution of its transformation plan and improvement programmes, as well as changing customer behaviours as a result of the pandemic.
On the other hand, its convenience stores business were hit by movement restrictions, as well as temporary store closures in China and reduced customer numbers in Hong Kong and Singapore. However, performance improved in Hong Kong and the mainland as various lockdown restrictions eased.
The health and beauty business was likewise affected. Within North Asia, the performance of Mannings was dragged by a continuing lack of overseas tourists in Hong Kong, despite seeing an initial surge in demand for PPEs. In Southeast Asia, the business performed well in Q1 but weakened as social distancing requirements began to take effect.