It will fluctuate, always
Price in USD has fallen due to strengthening of USD against the currencies of country's where dairy farm has operations may account for part of the effect
I didn't follow DairyFarm very closely. I monitor it as a competitor of Sheng Siong.
I reckon there is a re-rating down of the company, due to slower growth observed since FY2012. The company's growth has changed from double-digit, to single-digit in percentage since FY2012. The PE was above 30 previously, and have been re-rated to slightly above 20 now.
Let's see the up-coming FY2014 result.
(not vested)
Don't follow DF close enough as well but the FMCG business generally isn't doing well... wonder how that is being passed down to retailers like DF.
- 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
- Acquired 19.99% in Yonghui Superstores in China at US$925m
- Increased interests in Rustan Supercenters to 66%
- Acquired 49% in Rose Pharmacy
- Exited Indian market with sale of Foodworld and Health and Glow
- 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.
2014 Financial Statements
Announcement of Results
DairyFarm also got a good partner for its China venture...
(not vested)
DAIRY FARM’S INVESTMENT IN YONGHUI SUPERSTORES RECEIVES
REGULATORY APPROVAL
13th March 2015 – Dairy Farm International Holdings Limited announced on 11th August
2014 that its wholly-owned subsidiary, The Dairy Farm Company, Limited, had entered into a
conditional agreement to acquire a 19.99% interest in Shanghai-listed Yonghui Superstores Co.,
Ltd for a consideration of RMB5.69 billion (currently approximately US$908 million). The
investment required certain regulatory approvals to be obtained prior to completion.
Dairy Farm is pleased to announce that, on 12th March 2015, the investment in Yonghui
Superstores received the final and unconditional approval of the China Securities Regulatory
Commission, which is the final regulatory approval required. Completion is expected to take
place in approximately one month, at which time the Company will make a further
announcement.
...
http://infopub.sgx.com/FileOpen/20150313...eID=338757
Yonghui Superstores Co. approved to issue up to 813 million new shares in private placement.
Source
Announcement came just an hour after approval of Dairy Farm's investment.
Dairy Farm is aggressive in its expansion in Greater China...
(not vested)
Dairy Farm acquires San Miu chain of supermarkets in Macau
SINGAPORE (Mar 25): Dairy Farm International Holdings ( Financial Dashboard), announced that its wholly-owned subsidiary, The Dairy Farm Company, had acquired the Macau-based supermarket operator, San Miu Supermarket.
San Miu operates 15 mass-market supermarkets with an average gross store size of 9,500 sq. ft.
The consideration of the acquisition was not disclosed.
...
http://www.theedgemarkets.com/sg/article...kets-macau
Diary Farm latest report, and margin continue be suppressed. The op margin is down, from all segments. The supermarket segment downed by almost half, from 3.5% (FY2014) to 1.8% (1H2015). The share price has dived for a good reason...
The company report is here
http://infopub.sgx.com/FileOpen/DFIH2015...eID=362374
(not vested)
Dairy Farm’s 1H earnings fall 18% to US$192 million
SINGAPORE (July 30): Dairy Farm International Holdings ( Financial Dashboard)’ earnings fell 18% to US$192 million ($263.5 million) in the first half ended June 30, 2015, from US$234 million in the year-earlier period.
Underlying profit attributable to shareholders fell 14% to US$193 million from US$224 million previously, says the group owns retail stores such as Cold Storage, Ikea, Giant, Guardian,7-Eleven, GNC and Marketplace.
The weaker underlying net profit reflected weaker operational performance, especially in its food segment, but this was partially offset by the first contribution from Yonghui, it says.
It adds that the disappointing trading in Guardian in Malaysia and adverse exchange rates also affected the group’s results on translation into US dollars.
Revenue leapt 27% to US$8.01 billion from US$6.31 billion, as a result of contributions from Yonghui and San Miu since the dates of acquisition.
Dairy Farm says margin pressures continue to impact the financial performance of its food business despite improved sales.
Shares in Dairy Farm ended 4 cents or 0.5% lower at $8.49
http://www.theedgemarkets.com/sg/article...92-million
The company investment on China Yonghui, becoming more interesting, with the endorsement from JD.com...
(not vested)
Dairy Farm to invest in China Yonghui Superstores' private placement
SINGAPORE (Aug 7): Dairy Farm International Holdings ( Financial Dashboard) will subscribe to China's supermarket operator Yonghui Superstores Co. private placement worth up to 6.5 billion yuan ($1.45 billion).
Dairy Farm, the Asian retail arm of Jardine Matheson, will invest about US$210 million ($291 million) in Yonghui's private placement via its wholly-owned unit The Dairy Farm Co., the companies said on Friday.
JD.com Inc, China's second-largest e-commerce site by sales, will acquire a 10% interest for about US$700 million, Dairy Farm said in a statement.
Dairy Farm will hold a 19.99% stake, while JD.com will own 10 percent following the placement.
...
http://www.theedgemarkets.com/sg/article...-placement