Dfi Retail Intl Regulatory News (DFI)

To: Business Editor 5th March 2015

For immediate release

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

DAIRY FARM INTERNATIONAL HOLDINGS LIMITED

2014 PRELIMINARY ANNOUNCEMENT OF RESULTS (UNAUDITED)

Highlights

· Sales up 5% with growth in all divisions

· Underlying profit 4% above last year

· Good results from Health and Beauty, Home Furnishings and Restaurants, offset by lower performance in Food

· Strategic investment in Yonghui Superstores in China announced

"Challenging trading conditions continue in some key businesses and markets, particularly in the supermarket and hypermarket sector in Southeast Asia. Progress is being made in repositioning the Company for future growth with strategic corporate, supply chain and IT investments. Dairy Farm's market-leading positions in most of its major businesses, broad retail footprint across Asia, strong balance sheet and growing focus on mainland China make it well placed to deliver long-term growth."

Ben Keswick

Chairman

Results

The final dividend of US¢16.50 per share will be payable on 13th May 2015, subject to approval at the Annual General Meeting to be held on 6th May 2015, to shareholders on the register of members at the close of business on 20th March 2015.

DAIRY FARM INTERNATIONAL HOLDINGS LIMITED

PRELIMINARY ANNOUNCEMENT OF RESULTS

FOR THE YEAR ENDED 31ST DECEMBER 2014

(UNAUDITED)

OVERVIEW

In 2014, Dairy Farm took a number of strategic initiatives, notably in mainland China and the Philippines, to improve the Group's positioning for sustained growth. In parallel, there was continued investment in the existing store network, supply chain infrastructure and IT systems and people to deliver a superior consumer offer and to provide a compelling shopping experience for customers.

PERFORMANCE

Sales, including 100% of associates and joint ventures, increased by 5% to US$13.1 billion in 2014 with growth achieved in all divisions. Underlying profit was US$500 million, 4% better than 2013. Underlying earnings per share were US¢36.98 as compared to US¢35.52 in 2013.

The Group's overall performance was mixed in 2014. The Food division reported lower profits despite increasing sales. Improved profitability in Greater China and Malaysia was more than offset by reductions in Indonesia, Singapore and the Philippines. By contrast, the Health and Beauty, Home Furnishings and Restaurants divisions reported further growth in sales and profits even in the face of margin pressures.

The profit of US$509 million attributable to shareholders in 2014, included a net non-trading gain of US$9 million arising mainly from the disposal of properties, was 2% above 2013.

The Group's financial position remains strong with net cash of US$475 million at the end of 2014. The reduction in net cash from the previous year was mainly due to higher investing activities, which included increased capital expenditure on stores and infrastructure, additional investment in Rustan Supercenters and the acquisition of a 49% interest in Rose Pharmacy in the Philippines.

The Board is recommending a final dividend of US¢16.50 per share, unchanged from the previous year, maintaining the total ordinary dividend for 2014 at US¢23.00 per share.

BUSINESS DEVELOPMENTS

A cohesive culture is being implemented across the Group which, together with the sharing of best practice, will enable the overall strength and scale of the Group to be brought to bear. This will be evidenced in terms of enhanced branding, improved supply chain discipline, a stronger private label programme, and an improved range and availability of products for customers.

The Group continues to expand its store network across all formats, and to renovate existing stores to enhance the shopping experience for customers.  During the year, Dairy Farm opened 124 net new stores and acquired 238 retail outlets.  As at 31st December 2014, Dairy Farm operated over 6,100 stores in 11 countries and territories.  Significant investment is also being made in IT infrastructure and systems as well as the supply chain to improve efficiency and increase productivity.

The Food business had another challenging year in 2014.  There was good growth in Greater China, particularly in Hong Kong. Malaysia benefited from measures being taken to enhance the fundamentals of the business, but in Singapore there was reduced profitability in a challenging environment. The performance in the Philippines was weaker due to rising costs, increased competition and store refurbishment. While there was modest like-for-like sales growth in Indonesia, significant cost inflation and higher stock provisions led to a material decline in profitability. Programmes are underway across the food businesses to increase the focus on fresh produce and corporate brands so as to provide a more distinctive offer.

In the Health and Beauty division, Hong Kong and Macau had another record year in both sales and profits, but profits declined in Malaysia in the face of greater competition. Expansion continues with the net addition of 81 outlets in the continuing operations. Good progress is being made in aligning the Mannings and Guardian brands to improve strategic positioning and execution. Store enhancements are taking place across the portfolio and investment is being made in the corporate brand programme.

In Home Furnishings, IKEA's store in Indonesia was opened in Jakarta in mid-October, and initial trading has been encouraging. The IKEA businesses in Hong Kong had a good year. In Taiwan, IKEA produced a strong performance as it benefited from the first full-year's contribution from the new Tai Chungstore opened in September 2013.

In the Restaurant division, Maxim's produced a steady performance, although it saw weaker trading in the fourth quarter due to softer mooncake sales in mainland China and the negative impact of the Occupy Central activity on several Hong Kong restaurants. The Group is continuing to expand Starbucks in Hong Kong and Vietnam, and is also growing its casual dining and Japanese restaurant chains in Hong Kong and mainland China. In May, it announced that it had entered into a new franchise relationship with The Cheesecake Factory, and expects to open the first store in 2016.

CORPORATE DEVELOPMENTS

Several strategic initiatives were taken during the year to re-position the Dairy Farm portfolio.

Agreement was reached in August to establish a strategic partnership with Yonghui Superstores Co., Ltd and to acquire a 19.99% shareholding in the company for an investment of RMB5.69 billion (approximately US$925 million). Yonghui is one of China's fastest growing food retailers, and both companies have agreed to work closely together to drive operating synergies. The investment will provide Yonghui with expansion capital and give Dairy Farm exposure to thelarge and growing PRC food retail sector. Regulatory approvals in China are being sought, and the transaction is expected to close during the first half of 2015.

In the Philippines, in August the Group acquired an additional 16% interest in Rustan Supercenters, Inc., increasing its shareholding to 66%. In November, the Group entered the Philippines Health and Beauty market with the acquisition of a 49% interest in Rose Pharmacy Inc., providing it with a material presence in another key market in Asia.

In July, Dairy Farm exited the Indian market with the sale of its Foodworld and Health and Glow joint venture interests to its local partner.

REGULATORY DEVELOPMENTS

Following shareholder approval at a Special General Meeting held in April, the transfer of the Company's listing on the Main Market of the London Stock Exchange to the standard listing category was completed on 27th May 2014.

PEOPLE

Dairy Farm's performance in 2014, in the face of significant market challenges, reflects the hard work and dedication of our employees. On behalf of the Board, I would like to thank them for their efforts and wish them well in the year ahead.

Giles White will be retiring as a Director on 31st July 2015 and we would like to thank him for his contribution.

PROSPECTS

Challenging trading conditions continue in some key businesses and markets, particularly in the supermarket and hypermarket sector in Southeast Asia. Progress is being made in repositioning the Company for future growth with strategic corporate, supply chain and IT investments. Dairy Farm's market-leading positions in most of its major businesses, broad retail footprint across Asia, strong balance sheet and growing focus on mainland China make it well placed to deliver long-term growth.

Ben Keswick

Chairman

GROUP CHIEF EXECUTIVE'S REVIEW

Dairy Farm is a leading Asian retailer and operates across four broad formats: Food (including Supermarkets, Hypermarkets, and Convenience stores), Health and Beauty stores, Home Furnishings stores and Restaurants. The Group operates multiple formats in most markets to satisfy different market segments and customer needs, and trades under well recognized brands, such as Wellcome, Cold Storage, Giant, Hero, 7-Eleven, Mannings, Guardian, IKEA and Maxim's. Dairy Farm strives to bring to Asian consumers the benefits of modern retailing and to be pioneersacross each of our formats.

The Group has strong market positions and cash generative operations in 11 Asian countries and territories, and continues to make significant investment in support of these businesses. In addition to driving organic growth, the Group seeks further investment opportunities in current and new markets in Asia. This approach builds upon the Group's knowledge and expertise, as well as providing a good balance of risk and return. By combining our investment approach with a strong balance sheet, Dairy Farm seeks sustained long-term earnings growth.

2014 PERFORMANCE

Sales, including 100% of associates and joint ventures, increased by 5% to US$13.1 billion (2013:US$12.4 billion). Pleasing like-for-like sales growth was achieved in the Health and Beauty, Home Furnishings and Restaurants divisions, and also in the food businesses in Greater China. All businesses experienced further margin pressures, however, which restricted profit growth. Challenging trading conditions for the food businesses in Southeast Asia also held back profit growth. Underlying profit for 2014 of US$500 million was 4% ahead of the prior year's US$480 million. At constant rates of exchange, sales would have increased 7% to US$13.4 billion, while underlying profits would have increased 5% to US$504 million.

The Group's Food business saw a decline in underlying profits mainly due to weaker performances in Indonesia, Singapore and the Philippines. Wellcome and 7-Eleven in Hong Kong traded well. In mainland China, 7-Eleven showed further improvement, while Wellcome in Taiwan delivered positive results after some store consolidation and a greater focus on the upscale segment. In Singapore, fragile consumer confidence, challenges in the labour market and escalating costs adversely affected the overall performance. Cold Storage was broadly stable in the upscale segment, but Giant struggled against its mid-market competitors. 7-Eleven had positive like-for-like sales following its store rationalization and range improvements. In Malaysia, profits improved due to better retail execution, increased focus on the customer, sharper promotion activities and tactical investments in margin to improve price perception and drive sales. The supermarket operations in Cambodia performed behind the prior year due to increased competition. In the Philippines, sales were maintained but profits declined asseveral key stores were under renovation during the year. Profitability was also impacted by the investment needed to bring operations in line with international practices. In Indonesia, while overall sales growth was seen in PT Hero's food operations, like-for-like sales were soft and profits were significantly lower following a material increase in operating costs and overheads.

Solid sales and profit growth were seen in the Group's Health and Beauty businesses. Mannings in Hong Kong and Macau had a strong year, while improved results were achieved in mainland China.  The Guardian business in Malaysia achieved higher sales, but profits were lower in a more competitive market. Guardian in Singapore and Indonesia also delivered a positive sales performance. Two new stores were added in Cambodia after the first opening at the end of 2013, while Vietnam added seven stores to its network and now operates in both Ho Chi Minh City and Hanoi.

IKEA in Hong Kong and Taiwan reported strong like-for-like sales growth. The new Tai Chung store which was opened in September 2013 continued to perform well in 2014. The first store in Indonesia also opened in the fourth quarter, and initial trading has been encouraging. Profits for the division were well up on the prior year.

Our restaurant associate, Maxim's, delivered another solid set of results. Expansion of the Chinese casual dining restaurants and Japanese restaurants continues in mainland China, and additional Starbucks stores were openedin Vietnam.

KEY DEVELOPMENTS

Significant effort is being made to build a cohesive culture across the Dairy Farm Group by sharing six guiding principles throughout the Company. Those principles highlight the key priorities in terms of Consumers, Innovation, People, Teamwork, Sustainable Results and Integrity. With these, and continuous communication initiatives to share best practice, we are beginning to leverage the overall strength and scale of the Group. Benefits will include enhanced and more consistent branding, improved supply chain discipline, a stronger corporate brand programme, and improved range and on shelf availability for our customers.

Following the reorganization of Dairy Farm's businesses by format in 2013, the past year has seen further action taken to position the Group better for growth. Key corporate initiatives include the sale of our operations in India, the planned expansion of our Food business into China through a proposed investment in Yonghui Superstores, the acquisition of an additional 16% of the shares in Rustan Supercenters in the Philippines,and entry into the health and beauty sector in the Philippines through a 49% stake in Rose Pharmacy.

These initiatives are complemented by investments in human resources, IT infrastructure and systems, supply chain infrastructure, e-commerce and store renovations, which are necessary to support the continued growth of the Group. The action being taken is aimed at putting Asian consumers at the centre of our business by providing meaningful innovation across all formats so as to deliver a superior shopping experience.

The key developments during the year were:

· In July we completed the sale of our operations in India through the divestment of our 49% shareholding in Foodworld and 50% shareholding in Health and Glow to our joint venture partner.

· In August the Group acquired an additional 16% interest in Rustan in the Philippines from its joint venture partner, bringing its ownership to 66% and providing increased management control of the business.

· In August agreement was reached to establish a strategic partnership with Yonghui Superstores Co., Ltd and to acquire a 19.99% shareholding in the company for an investment of approximately RMB5.69 billion (US$925 million).  Yonghui is one of the leading food retailers in China with sales of RMB36.7 billion in 2014 and 335 stores in 17 provinces as at 31st December 2014. Many opportunities have been identified to collaborate and drive benefits for both companies. The investment is subject to regulatory approval in China, which is currently being sought. The transaction is expected to close in the first half of 2015.

· In November the Group acquired a 49% interest in Rose Pharmacy, a leading Philippine pharmacy chain, which establishes an entry point for the growing health and beauty segment in a key Asian market.

· During the year agreement was reached to divest 30% of the ordinary shares in GCH Malaysia Sdn. Bhd., operator of the Group's Malaysian Food business, to the Antah Group in order to meet local regulatory requirements. This transaction, which completed in February 2015, did not extend to the Group's Health and Beauty activities in Malaysia.

· A net 124 stores were added during the year which, together with 238 Rose Pharmacy stores acquired in the Philippines, gave a total store portfolio of 6,101 as at 31st December 2014. Despite adding 39 7-Eleven stores in Southern China, the number of Food business outlets declined by a net eight stores, mainly due to the consolidation of the Group's convenience stores in Singapore and Indonesia.

· The Health and Beauty business opened a net 81 stores across different markets, including 30 in mainland China and 33 in Indonesia, in addition to those added by Rose Pharmacy.

· The first IKEA store in Indonesia was opened in October with an encouraging initial performance.

· Maxim's opened 53 net new outlets during the year, including 23 in mainland China and nine Starbucks outlets in Vietnam. Maxim's also signed an agreement with The Cheesecake Factory to bring this leading U.S. casual dining concept to Asia. The first outlet is expected to open in 2016.

BUSINESS REVIEW

FOOD

Food reported US$8.4 billion in total sales, an increase of 2%, while operating profit declined by 6% to US$299 million, principally driven by poor results in Singapore, Indonesia and the Philippines within the supermarkets/hypermarkets formats.

There has been increased focus during the year on strengthening the Group's fresh produce offering across all food formats, and this has had positive results. In parallel, the Group's corporate brand programme has been expanded significantly in key categories to heighten differentiation and customer choice.

FOOD - SUPERMARKETS/HYPERMARKETS

Supermarkets/Hypermarkets reported US$6.5 billion in total sales, representing an increase of 1%, while operating profit declined by 9% to US$226 million.

In Hong Kong, Wellcome increased its market share in grocery and fresh food with a strong increase in sales and good profit growth. The number of Wellcome stores grew by ten to 318.  Wellcome maintained its low price strategy, while strengthening its fresh food offer.  Jasons rebalanced its product assortment strategy to include more direct imported Western/European ranges which deliver better margins. Although the outlook for 2015 is challenging, Wellcome is investing in automation and people development to drive further growth.

In Taiwan, full-year sales and operating profits grew, despite having 17 fewer stores than last year, as like-for-like sales improved.  The Fresh Production Centre and the Dry Distribution Centre were successfully integrated to enhance productivity, product quality and overall service levels.  The growth and expansion of the high-end supermarket format Jasons, which at the year end had 12 stores, was a key highlight in 2014.

In Indonesia, while full-year sales grew 11%, both new store and like-for-like sales performance were weak particularly in the Giant supermarket format. As a result of disappointing top line growth and significant cost increases in labour and utilities, as well as higher provisions to accelerate stock liquidation, operating profits fell significantly.  During the year, the Group opened new distribution centre hubs in Medan, Lampung and Kalimantan and also introduced decentralized buying teams to improve logistics efficiency, strengthen the assortment and improve the quality of fresh products. Migration to a new warehouse management system has also improved efficiency, reduced handling costs and strengthened key processes in the supply chain.

Giant gained market share as it expanded in cities outside Java. Its focus on competitive pricing has enhanced its low price image and improved sales.  A shortage of electricity capacity in certain cities, however, has either slowed expansion plans or increased costs. Hero Supermarkets continued to improve its offer across fresh, imported and exclusive ranges.

In Malaysia, 2014 was a year of transformation for the food business, becoming more customer-centric through store refurbishments, sharper pricing and enhanced assortments. Market share and penetration has improved, although the discounting and stock clearance activities have negatively affected margins. The trading environment in Malaysia faces some uncertainties in 2015 with the introduction of the new Goods and Services Tax ('GST') on 1st April 2015. Nevertheless the Group remained positive about the medium-term outlook and is making investments in existing stores, in opening new stores and in its supply chain to strengthen further its competitive position.

In the Philippines, the Group increased its shareholding in Rustan Supercenters by 16% to 66%. Several benefits, including group volume purchasing, IT infrastructure, supply chain know-how and corporate brand have been brought to Rustan.  Seven new stores were opened during 2014.  Particularly encouraging growth was achieved in the Wellcome neighbourhood stores.  Expansion was principally in the greater Manila area, although three new stores were also added in Cebu City.  The Group ended the year with 51 stores in the Philippines. The Group continues to emphasize its fresh credentials to drive differential in the market. In recognition of its efforts, Rustan was awarded the 'Outstanding Retailer Award' by the Philippines Retailer Association. Key priorities in 2015 include further improvements to the fresh offer, strengthening corporate label sales in targeted categories and additional new units.

In Singapore, the retail environment remained challenging in 2014.  Cold Storage achieved higher sales despite the forced closure of a major store and extensive refurbishment work in other key stores. Profitability at Cold Storage remained stable during the year in the face of margin pressures from rising costs. Sales from new stores opened in 2014 are expected to increase gradually over 2015 as they build on their core strengths in fresh and imported products, and deployment of productivity-led initiatives including electronic shelf labels, closed-loop cash handling machines and self-scan checkouts. In the mid market Giant operations suffered from rising wages and a shortage of manpower which impacted both sales and profitability.  The business is undergoing a transformation with greater emphasis on fresh food and a streamlined grocery range. Resources are also being invested to standardize store equipment and programmes, and to simplify operations. These changes, supported by sharper customer focus, will put the business on a much stronger footing.

FOOD - CONVENIENCE STORES

Convenience Stores reported US$1.9 billion in total sales, representing an increase of 4% over the previous year (2013: US$1.8 billion).  Operating profit increased by 3% to US$73 million.

In Hong Kong, in the face of higher rent and labour costs, 7-Eleven did well to increase both sales and operating profits for the year. With an extensive network of 921 stores as at the end of December 2014, 7-Eleven remains the clear market leader. It continued to innovate with themed promotions, the launch of Daily Café coffee and innovation in Ready-To-Eat products. Full-year sales and operating profits were also up in Macau.

In Southern China, 7-Eleven achieved record high one-day sales on '7-11 day' (11th July), nearly double average daily sales. Full-year sales and operating profits rose compared to 2013. Store count increased by a net 39 to a total of 686 at the end of 2014. In the coming year, 7-Eleven will focus on new ready-to-eat products, building its network across Guangdong and expanding the number of franchise stores.

In Singapore, 7-Eleven continued its store consolidation programme, closing 50 loss-making stores during the year. The business opened six new stores at strategic locations and modernized or refurbished 61 additional stores. Like-for-like sales were slightly positive. Plans for 2015 include an expanded ready-to-eat offer and an increased range of services.

In Indonesia, Starmart's ready-to-eat offer produced positive sales, while several loss making stores were closed. PT Hero is reviewing its strategic options for Starmart.

HEALTH AND BEAUTY

Health and Beauty achieved another year of record sales and profit, led by a particularly strong performance from Mannings in Hong Kong and Macau. Sales increased 11% to US$2.5 billion while operating profit rose by 11% to US$219 million (2013: US$198 million). The Group now operates 1,800 health and beauty stores under the Mannings, Guardian and Rose Pharmacy brands across ten countries and territories.

Significant effort has continued to be made during the year to align the brand identities of Mannings and Guardian with adoption of a common livery and a cohesive look, tone and feel to the stores. Improved disciplines around stock management, space planning, range and display, and supply chain processes have delivered better on shelf availability for customers. Increased investment is being made in corporate brand products, and in sourcing exclusive lines as a point of difference in the market.

In Hong Kong, Mannings achieved record sales in 2014.  Mannings enjoys a strong brand equity, and is highly trusted by consumers at a time when preventative health is becoming an increasingly important issue.

In mainland China, the performance of Mannings improved further with the net addition of 30 stores, enhancement to its assortment, and double digit like-for-like sales growth.

In Singapore, 50 stores were renovated in the new Guardian façade and a new pilot e-commerce site was launched in the fourth quarter.

In Malaysia, increased competition, negative like-for-like sales and significant cost increases impacted profits. Guardian maintained its market leading position and protected top-line performance with increased promotional activity.

In Indonesia, Guardian reported strong sales growth with solid like-for-like sales. A new dedicated distribution centre was opened and 33 net new stores were added. A strategic partnership is being piloted with Melawai Pharmacy in Jakarta to combine their local pharmacy strength with the broader health and beauty offering of Guardian.

In Vietnam, seven net additional Guardian stores were added, bringing the network to 25 stores at the year end. Two new Guardian stores were opened in Cambodia during the year with three stores trading at the end of the year.

In the Philippines, a 49% interest was acquired in Rose Pharmacy, which provides an attractive entry to the health and beauty category in the country.

The potential for further growth in the health and beauty sector is very significant for the Group. Rising incomes, increased focus on health and well-being, as well as broader awareness of beauty and personal care products are all creating increased demand.

HOME FURNISHINGS

Home Furnishings achieved record sales and profit during the year under review. Operating profit rose by 16% to a record US$51 million (2013: US$44 million), riding on increased sales of US$497 million, up 18% from US$422 million in 2013. The Group now operates nine IKEA stores in Hong Kong, Taiwan and Indonesia.

The brand celebrated IKEA's 20th anniversary in Taiwan, where it has established itself as the market leader. In October, the first IKEA store was opened in Indonesia, the world's fourth most populous country. Located in Alam Sutera in greater Jakarta, the 35,000 sq. m. store features over 7,000 home furnishing products, 55 inspirational room-settings and three complete home settings. Initial trading has been encouraging.

Both Taiwan and Hong Kong recorded solid year-on-year growth, despite sluggish local property markets. IKEA Hong Kong weathered the effects of the Occupy Central protests on its Causeway Bay store to deliver solid returns, while IKEA Taiwan benefited from a full year of operations in 2014 from its IKEA store that opened in Tai Chung in September 2013.

During the year, the Group focused on increasing quality and continued pricing revisions to secure its positioning as the price leader in each market, targeting greater volumes and increased market shares. IKEA also ran aggressive campaigns to build consumer awareness. These were independently recognized winning several awards including: Service & Courtesy Award from the Hong Kong Retail Management Association; PR Awards HK2014 and Marketing Excellence Awards 2014; the Golden Award of Service Industry by Taiwan's Common Wealth Magazine as well as marketing and PR awards for IKEA's TV commercials and the 'IKEA House' concept in Taiwan.

Looking ahead, the Group will focus on sustaining strong like-for-like sales growth in existing stores, fine-tuning the assortment and execution in Indonesia, and exploring opportunities to improve customer accessibility in all territories in which we operate.

RESTAURANTS

Restaurants reported US$1.7 billion in total sales, representing an increase of 13% over the previous year (2013: US$1.6 billion), while profit contribution increased by 3%.

The restaurant businesses overcame a number of challenging external factors to deliver steady growth in 2014. Expansion into China was the key growth driver during the year, as well as the introduction of several innovative concepts including Urban Bakery that created new dining experiences for customers. There was also continued expansion of Starbucks in Vietnam.

Maxim's acquired the Wildfire brand and two restaurants in Hong Kong, and subsequently opened an additional Wildfire outlet at Victoria Peak.  The Chinese cuisine concept Jade Garden expanded from Guangzhou and Shenzhen into Shanghai and Chengdu, where it has been enthusiastically received by local customers. Maxim's is also preparing for the opening of its first Cheesecake Factory restaurant in 2016, having reached agreement during the year to franchise this well-known brand in Greater China.

The group recently completed construction of its third factory in Hong Kong. Maxim's now operates three premises specializing in various aspects of food manufacturing, including branded products, cakes & bakery and food processing.

In recognition of its industry leading programmes, Maxim's received a number of awards in 2014, including a Gold Award at the HKMA Quality Awards, and the Outstanding Performance Award at the Service & Courtesy Awards organized by the Hong Kong Retail Management Association.

With increasing external challenges, including macroeconomic uncertainty, labour costs and rental pressures, Maxim's anticipates another challenging year, and will focus on building customer relationship programmes and controlling costs to enhance returns.

THE YEAR AHEAD

Trading conditions in some of the Group's major markets are expected to remain challenging, especially for the Food businesses in Southeast Asia. The Group's approach, however, is to drive sales and profit growth in ways that build long-term value. To that end, the Group continues to invest in new and existing stores, strengthen its brands, improve operations and enhance the shopper experience across all formats.

Dairy Farm expects to achieve organic growth across its formats in existing markets as its primary source of growth. The Group will, however, selectively consider acquisition opportunities where they can enhance our current portfolio of brands and businesses. 

The Group's success depends critically on the passion, commitment and hard work of its people. I want to thank them for their tremendous contribution which ensured another year of strong progress for Dairy Farm.

Graham Allan

Group Chief Executive