Supermarket operator Dairy Farm International said Wednesday sales and profit in Southeast Asia were impacted by the beginning of the company’s store-consolidation plan.
In February, Dairy Farm had said a detailed strategic review had concluded the Southeast Asia Food division was “not viable.”
“Although the group’s supermarkets and hypermarkets business continued to face challenges, implementation of the multi-year transformation plan is now in progress, with actions being taken to improve performance over the medium term,” the supermarket operator said in a filing to SGX.
Overall, first quarter sales were up on-year, with four of Dairy Farm’s five formats continuing to perform well, even amid mixed market conditions, Dairy Farm said.
“There was a strong performance from the Health and Beauty business as well as from key associates Maxim’s, Yonghui and Robinsons Retail, which offset the continuing softness in the Food business,” the filing said. “IKEA continued to perform in line with expectations, although its contribution to the group was impacted by higher pre-opening costs than in the first quarter of 2018.”
While you’re here, we’re hoping you can help us out.
Shenton Wire has been providing you with quick news and market analysis. Help us continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.
Your monthly contribution will directly fund our journalism.
You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.