Dfi Retail Intl Regulatory News (DFI)

31 Jul 2008 10:09



To: Business Editor	31st July 2008
	For immediate release

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

DAIRY FARM INTERNATIONAL HOLDINGS LIMITED

HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2008

Highlights

Underlying earnings per share up 40% 

Good results in major markets

Strong cash flow

"Despite some challenges in the overall economic outlook, Dairy Farm's businesses have continued to trade well, and the prospects for the remainder of the year are positive. The Group intends to maintain its expansion, supported by the growth in demand from consumers in Asia."

Simon Keswick, Chairman

31st July 2008

Results 

	(unaudited)
	Six months ended 30th June
	2008	2007	Change
	US$m	US$m	%
Sales
- subsidiaries	3,315	2,796	+19
- including associates	3,775	3,211	+18
Underlying profit attributable to shareholders	141	101	+40
Non-trading items	13	-	n/a
Profit attributable to shareholders	154	101	+52
Underlying PBIT to sales	5.2%	4.0%	+1.2%
	US¢	US¢	%
Underlying earnings per share	10.50	7.52	+40
Basic earnings per share	11.45	7.52	+52
Interim dividend per share	4.00	3.00	+33

The interim dividend of US¢4.00 per share will be payable on 15th October 2008 to shareholders on the register of members at the close of business on 22nd August 2008. The ex-dividend date will be on 20th August 2008, and the share registers will be closed from 25th to 29th August 2008, inclusive.

DAIRY FARM INTERNATIONAL HOLDINGS LIMITED

HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2008

OVERVIEW

The Dairy Farm Group enjoyed generally favourable trading conditions in its major markets during the first half of the year, enabling it to report strong growth in sales and profit.

PERFORMANCE

Sales, including 100% of associates, rose by 18% to US$3.8 billion in the first half of 2008. Underlying profit for the period increased by 40% to US$141 million, while underlying earnings per share also increase by 40% to US¢10.50. The profit attributable to shareholders of US$154 million benefited from non-trading gains of US$13 million, arising mainly on the disposal of the Group's 50% interest in CJ Olive Young.

Net borrowings at the end of June increased to US$128 million following the payment of the 2007 final dividend, up from US$83 million at the previous year end. The Group's financial position remains sound with the benefit of strong cash flow generation.

The Board has declared an interim dividend of US¢4.00 per share, a 33% increase over last year's interim dividend of US¢3.00 per share.

OPERATIONS

Strong expansion continued in the first half of 2008 with the addition of a net 167 outlets, increasing the total network to 4,359 stores. The first Giant hypermarket was opened in Brunei; which brings the number in operation to 72, including 43 in Malaysia, 22 in Indonesia and six in Singapore.

North Asia

Each of the Group's Hong Kong businesses - Wellcome, Mannings, 7-Eleven and IKEA - reported improved results in the first half of the year, while there were further positive contributions from 7-Eleven and Mannings in Macau. In Taiwan, Wellcome supermarkets continued to open Express Fresh and X-Market stores, recording satisfactory results from these new formats. IKEA Taiwan achieved increased sales and improved its overall financial performance, although its result remains below expectations.

In Southern China, the 7-Eleven chain has been increased to 464 operating outlets, including 46 that are franchised. Improved results were recorded in the 39 Mannings health and beauty stores following refinements to the format and product range, and the first stores have now been opened outside Guangdong province.

The Group's associate, Maxim's, is facing significant increases in ingredient costs, but was able to achieve growth in sales and profit during the period. Its development continued in Hong Kong with the acquisition of the 53-store Arome cake shop chain and the opening of the 100th Starbucks outlet.

East Asia

All formats in Malaysia achieved increases in sales and profit.  Expansion continued in both peninsular Malaysia and East Malaysia with the opening of two hypermarkets, five supermarkets and 19 health and beauty stores. Two sites have also been acquired for the development of purpose-built distribution centres to support this expansion. In Brunei, in addition to opening of the first Giant hypermarket, the local Guardian health and beauty business was acquired and expanded to eight stores. The operation of three Wellcome supermarkets in Vietnam is providing insights into this new market.

Recent changes in the Group's operations in Indonesia have led to improved profitability in all formats. The rebranding to Giant of selected Hero supermarkets continues, and 44 Giant supermarkets were in operation at the end of June. In April, an additional 25% direct interest in PT Hero was acquired pursuant to an option agreement at a cost of US$42 million.

South Asia 

Improved results were achieved in Singapore, particularly in the supermarkets. Hypermarkets, after a somewhat difficult year in 2007, also performed better. The 7-Eleven operation continued to benefit from the rebranding of 62 former Shell stores.

The Group's supermarket joint venture in India maintained a moderate rate of expansion, but the rapid influx of competitors into the sector is making the trading environment difficult. 

PROSPECTS

Despite some challenges in the overall economic outlook, Dairy Farm's businesses have continued to trade well, and the prospects for the remainder of the year are positive. The Group intends to maintain its expansion, supported by the growth in demand from consumers in Asia.

Simon Keswick

Chairman

31st July 2008

Dairy Farm International Holdings Limited
Consolidated Profit and Loss Account
					(unaudited)								Year ended
					Six months ended								31st
					30th June								December
					2008				2007				2007
					US$m				US$m				US$m
Sales (note 2)					3,315.1				2,795.7				5,887.2
Cost of sales					(2,308.7)				(1,950.7)				(4,095.7)
Gross margin					1,006.4				845.0				1,791.5
Other operating income					23.0				5.4				13.5
Selling and distribution costs					(735.9)				(637.7)				(1,315.7)
Administration and other operating expenses					(107.6)				(99.7)				(213.2)
Operating profit (note 3)					185.9				113.0				276.1
Financing charges					(12.2)				(13.2)				(25.6)
Financing income					5.4				10.6				22.8
Net financing charges					(6.8)				(2.6)				(2.8)
Share of results of associates and
joint ventures (note 4)					11.3				11.4				29.4
Profit before tax					190.4				121.8				302.7
Tax (note 5)					(36.1)				(20.9)				(45.6)
Profit for the period					154.3				100.9				257.1
Attributable to:
Shareholders of the Company					154.2				101.2				258.2
Minority interests					0.1				(0.3)				(1.1)
					154.3				100.9				257.1
					US¢				US¢				US¢
Earnings per share (note 6)
- basic					11.45				7.52				19.19
- diluted					11.44				7.51				19.17

Dairy Farm International Holdings Limited
Consolidated Balance Sheet
							(unaudited)								At 31st
							At 30th June								December
							2008				2007				2007
							US$m				US$m				US$m
Net Operating Assets
Intangible assets							338.0				268.6				292.5
Tangible assets							633.9				562.2				603.8
Associates and joint ventures							127.8				122.3				120.3
Other investments							3.3				0.4				0.4
Non-current debtors							110.1				96.0				101.3
Deferred tax assets							15.4				9.1				14.4
Pension assets							72.1				60.3				72.5
Non-current assets							1,300.6				1,118.9				1,205.2
Stocks							577.7				489.6				545.6
Current debtors							108.6				113.7				106.2
Current tax assets							7.6				9.4				10.0
Bank balances and other liquid funds							351.8				462.8				395.9
							1,045.7				1,075.5				1,057.7
Non-current assets classified as held for sale (note 8)							32.7				-				39.8
Current assets							1,078.4				1,075.5				1,097.5
Current creditors							(1,452.2)				(1,283.3)				(1,445.8)
Current borrowings							(34.8)				(47.1)				(40.0)
Current tax liabilities							(67.2)				(46.1)				(48.7)
Current provisions							(2.0)				(1.2)				(3.0)
Current liabilities							(1,556.2)				(1,377.7)				(1,537.5)
Net current liabilities							(477.8)				(302.2)				(440.0)
Long-term borrowings							(444.9)				(408.7)				(439.1)
Deferred tax liabilities							(42.8)				(40.0)				(43.7)
Pension liabilities							(27.2)				(21.9)				(24.1)
Non-current creditors							(1.1)				(0.9)				(1.1)
Non-current provisions							(17.1)				(10.2)				(16.1)
Non-current liabilities							(533.1)				(481.7)				(524.1)
							289.7				335.0				241.1
Total Equity
Share capital							74.8				74.7				74.8
Share premium and capital reserves							31.4				28.6				30.3
Revenue and other reserves							180.1				227.7				133.0
Shareholders' funds (note 9)							286.3				331.0				238.1
Minority interests							3.4				4.0				3.0
							289.7				335.0				241.1

Dairy Farm International Holdings Limited
Consolidated Statement of Recognized Income and Expense
							(unaudited)												Year ended
							Six months ended												31st
							30th June												December
							2008								2007				2007
							US$m								US$m				US$m
Net actuarial gains on defined benefit pension plans							-								-				12.1
Gains on revaluation of other investments							3.0								-				-
Net exchange translation differences							1.4								(4.4)				(11.4)
Gains on cash flow hedges							3.2								0.9				0.3
Tax on items taken directly to equity							0.8								-				(0.8)
Net income recognized directly in equity							8.4								(3.5)				0.2
Transfer to profit and loss on realization of exchange reserves							(1.0)								-				-
Profit after tax							154.3								100.9				257.1
Total recognized income and expense for the period							161.7								97.4				257.3
Attributable to:
Shareholders of the Company							161.5								97.7				258.6
Minority interests							0.2								(0.3)				(1.3)
							161.7								97.4				257.3

  

Dairy Farm International Holdings Limited
Consolidated Cash Flow Statement
									(unaudited)												Year ended
									Six months ended												31st
									30th June												December
									2008						2007						2007
									US$m						US$m						US$m
Operating activities
Operating profit (note 3)									185.9						113.0						276.1
Depreciation and amortization									68.4						59.5						123.3
Other non-cash items									(11.5)						2.2						10.2
Decrease in working capital									16.3						4.3						84.0
Interest received									6.6						10.3						20.5
Interest and other financing charges paid									(12.3)						(12.4)						(25.4)
Tax paid									(17.8)						(14.1)						(40.8)
									235.6						162.8						447.9
Dividends from associates and joint ventures									9.6						10.9						25.6
Cash flows from operating activities									245.2						173.7						473.5
Investing activities
Purchase of tangible assets									(100.7)						(83.2)						(186.0)
Store acquisitions (note 11a)									(2.6)						(0.9)						(0.9)
Purchase of subsidiaries (note 11b)									(42.0)						(3.5)						(3.6)
Purchase of associates and joint ventures									(6.2)						(8.4)						(9.2)
Purchase of land use rights									(34.9)						-						(21.6)
Purchase of other intangible assets									(3.9)						(0.8)						(1.5)
Sale of associates and joint ventures (note 11c)									20.5						-						-
Sale of other investments									0.8						-						-
Sale of properties									-						3.5						4.4
Sale of other tangible assets									0.5						0.5						1.1
Cash flows from investing activities									(168.5)						(92.8)						(217.3)
Financing activities
Issue of shares									0.2						0.1						1.0
Drawdown of borrowings									605.8						496.6						934.6
Repayment of borrowings									(612.9)						(479.7)						(903.1)
Dividends paid by the Company (note 10)									(114.4)						(91.5)						(347.1)
Cash flows from financing activities									(121.3)						(74.5)						(314.6)
Effect of exchange rate changes									2.2						(0.1)						1.2
Net (decrease)/increase in cash and cash equivalents									(42.4)						6.3						(57.2)
Cash and cash equivalents at beginning of period									384.8						442.0						442.0
Cash and cash equivalents at end of period									342.4						448.3						384.8
Dairy Farm International Holdings Limited
Notes to Condensed Financial Statements
1.	ACCOUNTING POLICIES AND BASIS OF PREPARATION
	The condensed financial statements have not been audited or reviewed by the Group's auditor pursuant to the UK  Auditing Practices Board guidance on the review of interim financial information. The condensed financial  statements contained in this announcement have been prepared in accordance with IAS 34, Interim Financial  Reporting.
	In 2008, the Group adopted the following interpretations to existing standards which are relevant to its operations:
	IFRIC 11, IFRS 2 - Group and Treasury Share Transactions IFRIC 14, IAS 19 - The limit on a Defined Benefit Asset, Minimum Funding Requirements and their interaction
	There have been no changes to the accounting policies described in the 2007 annual financial statements as a result  of adoption of the above interpretations.
	Certain comparative figures have been reclassified to conform with the current period's presentation.
	The Group's reportable segments are set out in notes 2, 3 and 4.
2.	SALES
								Including associates
								and joint ventures													Subsidiaries only
													Six months ended 30th June
								2008					2007								2008				2007
								US$m					US$m								US$m				US$m
	Analysis by geographical area:
	North Asia							2,114.4					1,844.5								1,685.3				1,459.7
	East Asia							960.8					798.6								960.8				798.6
	South Asia							699.9					567.4								669.0				537.4
								3,775.1					3,210.5								3,315.1				2,795.7
	Analysis by business:
	Supermarkets/hypermarkets							2,094.2					1,765.5								2,073.6				1,744.3
	Health and beauty stores							526.5					461.2								506.0				426.3
	Convenience stores							608.9					515.8								608.9				515.8
	Home furnishings stores							126.6					109.3								126.6				109.3
	Restaurants							418.9					358.7								-				-
								3,775.1					3,210.5								3,315.1				2,795.7
	Dairy Farm operates in three regions: North Asia, East Asia and South Asia, and accordingly, its primary segment reporting is by geographical areas with secondary segment information reported by business. North Asia comprises Hong Kong, Mainland China, Macau, Taiwan and South Korea. East Asia comprises Malaysia, Indonesia, Vietnam and Brunei. South Asia comprises Singapore, India and Thailand.

3.	OPERATING PROFIT
						Six months ended 30th June
						2008				2007
						US$m				US$m
	Analysis by geographical area:
	North Asia					90.4				64.9
	East Asia					60.8				38.1
	South Asia					33.1				20.7
						184.3				123.7
	Support office					(13.3)				(10.7)
						171.0				113.0
	Non-trading items in North Asia:
	- Gain on sale of associates and joint ventures					14.2				-
	- Gain on sale of other investments					0.7				-
						185.9				113.0
	Analysis by business:
	Supermarkets/hypermarkets					98.3				62.5
	Health and beauty stores					45.1				33.2
	Convenience stores					29.8				23.7
	Home furnishings stores/property					11.1				4.3
						184.3				123.7
4.	SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
						Six months ended 30th June
						2008				2007
						US$m				US$m
	Analysis by geographical area:
	North Asia					13.7				12.5
	South Asia					(2.4)				(1.1)
						11.3				11.4
	Analysis by business:
	Restaurants					13.7				13.0
	Supermarkets					(2.2)				(0.9)
	Health and beauty stores					(0.2)				(0.7)
						11.3				11.4
	Results are shown after tax and minority interests in the associates and joint ventures.

5.	TAX
	Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates. The Group has no tax payable in the United Kingdom (2007: nil).
6.	EARNINGS PER SHARE
	Basic earnings per share are calculated on profit attributable to shareholders of US$154.2 million (2007: US$101.2 million) and on the weighted average number of 1,346.2 million (2007: 1,344.9 million) shares in issue during the period. The weighted average number excludes the shares held by the Trustee under the Senior Executive Share Incentive Schemes.
	Diluted earnings per share are calculated on profit attributable to shareholders of US$154.2 million (2007: US$101.2 million), and on the weighted average number of 1,348.0 million (2007: 1,346.5 million) shares in issue after adjusting for 1.8 million (2007: 1.6 million) shares which are deemed to be issued for no consideration under the Senior Executive Share Incentive Schemes based on the average share price during the period.
	Additional basic and diluted earnings per share are calculated for the six months ended 30th June 2008 based on underlying profit attributable to shareholders of US$141.4 million. A reconciliation of earnings is set out below:
					Six months ended 30th June 2008
					Basic earnings			Diluted earnings
							per share		per share
					US$m		US¢		US¢
	Profit attributable to shareholders				154.2		11.45		11.44
	Non-trading items (note 7)				(12.8)
	Underlying profit attributable to shareholders				141.4		10.50		10.49
	There were no non-trading items for the six months ended 30th June 2007.

7.	NON-TRADING ITEMS
	Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance. Items classified as non-trading items include gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets and other investments; provisions for the closure of businesses; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.
	An analysis of non-trading items after interest, tax and minority interests for the six months ended 30th June 2008 (2007: nil) is set out below:
													US$m
	Sale of 50% shareholding in CJ Olive Young												12.2
	Sale of other investments												0.6
													12.8
8.	NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE
	At 31st December 2007, the non-current assets classified as held for sale included a retail property in Malaysia with a carrying value of US$32.5 million, and the 50% investment in CJ Olive Young with a carrying value of US$7.3 million.
	In February 2008, the Group completed the sale of its 50% shareholding in CJ Olive Young to its partner, CJ Corp, and realized a profit after tax of US$12.2 million.
	The balance at 30th June 2008 represented the same retail property in Malaysia, which is expected to be disposed of in the second half of 2008.
9.	SHAREHOLDERS' FUNDS
							Six months ended 30th June
							2008						2007
							US$m						US$m
	At 1st January						238.1						324.0
	Recognized income and expense attributable to shareholders						161.5						97.7
	Dividends (note 10)						(114.4)						(91.5)
	Employee share option schemes
	- value of employee services						0.9						0.7
	- exercise of share options						0.2						0.1
	At 30th June						286.3						331.0

10.	DIVIDENDS
																										Six months ended 30th June
																										2008									2007
																										US$m									US$m
	Final dividend in respect of 2007 of US¢8.50 (2006: US¢6.80) per share																								114.4									91.5
	An interim dividend in respect of 2008 of US¢4.00 (2007: US¢3.00) per share amounting to a total of US$53.9 million (2007: US$40.4 million) is declared by the Board, and will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2008.
11.	NOTES TO CONSOLIDATED CASH FLOW STATEMENTS
													Six months ended 30th June
													2008																							2007
													Book							Fair value								Fair								Fair
													amount							adjustments								value								value
													US$m							US$m								US$m								US$m
	(a)	Store acquisitions
		Tangible assets											0.2							-								0.2								(2.4)
		Current assets											0.9							(0.1)								0.8								2.9
		Net assets acquired											1.1							(0.1)								1.0								0.5
		Goodwill																										1.6								0.4
		Total cash consideration																										2.6								0.9
		Total cash consideration of US$2.6 million represented seven Guardian stores in Brunei acquired from a third party in February 2008. In 2007, the Group acquired the store operating assets of two supermarkets in Vietnam at fair value from a third party for a cash consideration of US$0.9 million.

	(b) Purchase of subsidiaries
		In April 2008, the Group paid US$42.0 million in cash to acquire an additional 25.2% interest in PT Hero Supermarket, pursuant to an option agreement.
		In March 2007, the Group's subsidiary, Guangdong Sai Yi Convenience Stores, acquired a 100% interest in Guangzhou Lianhua Quik Convenience Co from a third party for a total cash consideration of US$3.5 million. The fair values of net liabilities assumed were as follows:
										Six months ended
										30th June 2007
											US$m
		Tangible assets									0.9
		Current assets									1.7
		Current liabilities									(3.1)
		Fair value of net liabilities assumed									(0.5)
		Goodwill									4.1
		Total consideration									3.6
		Cash and cash equivalent acquired									(0.1)
											3.5
	(c) Sale of associates and joint ventures
		In February 2008, the Group completed the sale of its 50% shareholding in CJ Olive Young to its partner, CJ Corp, for a cash consideration of US$20.5 million.
12.	CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
	Total capital commitments at 30th June 2008 and 31st December 2007 amounted to US$150.1 million and US$134.5 million respectively.
	Various Group companies are involved in litigation arising in the ordinary course of their respective businesses. Having reviewed outstanding claims and taking into account legal advice received, the Directors are of the opinion that adequate provisions have been made in the condensed financial statements.

Dairy Farm International Holdings Limited
Principal Risks and Uncertainties
The following are the principal risks and uncertainties facing the Company as required to be disclosed pursuant to The Disclosure and Transparency Rules issued by the Financial Services Authority of the United Kingdom and are in addition to the matters referred to in the Chairman's Statement:
1.	Economic Risk, Market Risk and Competition
	Most of the Group's businesses are exposed to the risk of negative developments in global and regional economies and financial markets. These developments can result in recession, inflation, currency fluctuations, or increases in financing costs, oil prices, and in the cost of raw materials and finished products. Such developments might increase operating costs or reduce revenues.
	A number of our businesses make significant investment decisions in respect of developments or projects that take time to come to fruition and achieve the desired returns and are, therefore, subject to market risks. These risks are further pronounced when operating in volatile markets.
	The Group's businesses operate in areas that are highly competitive, and failure to compete effectively in terms of price, quality of product or levels of service can have an adverse effect on earnings. Significant pressure from such competition may lead to reduced margins.
	The steps taken by the Group to manage its exposure to financial risk are set out in the Financial Risk Management section on pages 23 to 25 and in the description of the systems of internal control set out in the Corporate Governance section on page 60 of the Company's 2007 Annual Report, which is available from the Company's website www.dairyfarmgroup.com.
2.	Concessions, Franchises and Key Contracts
	A number of the Group's businesses and projects are reliant on concessions, franchises, management or other key contracts. Cancellation, expiry or termination, or the renegotiation of any such concession, franchise or key contract, could have an adverse effect on the financial condition and results of operations of certain subsidiaries, associates and joint ventures of the Group.

3.

Regulatory and Political Risk

The Group's businesses are subject to a number of regulatory environments in the territories in which they operate. Changes in the regulatory approach to such matters as foreign ownership of assets and businesses, exchange controls, planning controls, emission regulations, tax rules and employment legislation have the potential to impact the operations and profitability of the Group's businesses. Changes in the political environment in such territories can also affect the Group's businesses.

4.

Terrorism, Pandemic and Natural Disasters

A number of the Group's operations are vulnerable to the effects of terrorism, either directly through the impact of an act of terrorism or indirectly through the impact of generally reduced economic activity in response to the threat of or an actual act of terrorism.

All Group businesses would be impacted by a global or regional pandemic which could be expected to seriously affect economic activity and the ability of our businesses to operate smoothly. In addition, many of the territories in which we operate can experience from time to time natural disasters such as earthquakes and typhoons.

Dairy Farm International Holdings Limited

Responsibility Statement

The Directors of the Company confirm to the best of their knowledge that:

a.

the condensed financial statements have been prepared in accordance with IAS 34; and

b.

the interim management report includes a fair review of all information required to be disclosed by the Disclosure and Transparency Rules 4.2.7 and 4.2.8 issued by the Financial Services Authority of the United Kingdom.

For and on behalf of the Board

Michael Kok

Howard Mowlem

Directors

31st July 2008

The interim dividend of US¢4.00 per share will be payable on 15th October 2008 to shareholders on the register of members at the close of business on 22nd August 2008. The ex-dividend date will be on 20th August 2008, and the share registers will be closed from 25th to 29th August 2008, inclusive. Shareholders will receive their dividends in United States Dollars, unless they are registered on the Jersey branch register where they will have the option to elect for Sterling. These shareholders may make new currency elections for the 2008 interim dividend by notifying the United Kingdom transfer agent in  writing by 26th September 2008. The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing on 2nd October 2008. Shareholders holding their shares through The Central Depository (Pte) Limited ('CDP')  in Singapore will receive United States Dollars unless they elect through CDP, to receive Singapore Dollars.

Dairy Farm Dairy Farm is a leading pan-Asian retailer. At 30th June 2008, the Group and its associates operated 4,359 outlets - including supermarkets, hypermarkets, health and beauty stores, convenience stores, home furnishings stores and restaurants; employed over 73,200 people in the region; and had total annual sales in 2007 of US$6.8 billion. The Group operates under well-known local brands, including: Supermarkets - Wellcome in Hong Kong, Taiwan and Vietnam, ThreeSixty and Oliver's The Delicatessen in Hong Kong, Jasons MarketPlace in Singapore, Taiwan and Hong Kong, Cold Storage in Singapore and Malaysia, Giant in Malaysia and Indonesia, Shop N Save in Singapore, Hero in Indonesia, Express Fresh and X-Market in Taiwan, and Foodworld in India; Hypermarkets - Giant in Malaysia, Singapore, Indonesia and Brunei; Health and beauty stores - Mannings in Hong Kong, Macau and China, Guardian in Singapore, Malaysia, Indonesia and Brunei, and Health and Glow in India; Convenience stores - 7-Eleven in Hong Kong, Macau, Southern China and Singapore, and Starmart in Indonesia; and Home furnishings stores - IKEA in Hong Kong and Taiwan. The Group has a 50% interest in Maxim's, Hong Kong's leading restaurant chain.  Dairy Farm International Holdings Limited is incorporated in Bermuda and has its primary share listing on the London Stock Exchange, and secondary listings on the Bermuda and Singapore stock exchanges. The Group's businesses are managed from Hong Kong by Dairy Farm Management Services Limited through its regional offices. Dairy Farm is a member of the Jardine Matheson Group.

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For further information, please contact:

Dairy Farm Management Services Limited

Michael Kok

(852) 2299 1881

Howard Mowlem

(852) 2299 1896

email: hmowlem@dairy-farm.com.hk

Matheson & Co., Limited

Philip Hawkins

(020) 7816 8136

Email:phawkins@matheson.co.uk

GolinHarris

John Morgan

(852) 2501 7939

email: john.morgan@golinharris.com.hk

Weber Shandwick Financial

Richard Hews/Hannah Marwood

(020) 7067 0700

email: rhews@webershandwick.com

As permitted by the Disclosure and Transparency Rules of the Financial Services Authority of the United Kingdom, the Company will not be posting a printed version of the Half-Yearly Results announcement to shareholders. The Half-Yearly Results announcement will remain available on the Company's website, www.dairyfarmgroup.com, together with other Group announcements.

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