Dairy Farm International (DFI) is primarily engaged in retail business across Asia. Together with its subsidiaries, its retail operations cover four segments:

Food – supermarkets, hypermarkets, convenience stores Health and Beauty – quick moving beauty and personal well being products Home Furnishings – household products through Ikea Restaurants – chain catering business through associate Maxim’s

Recently, DFI announced its full year earnings with some negative surprises. Let’s take a look at DFI from different angles.

*US$ currency applies to all figures in this article

Fundamentals

For the fiscal year ended 31 December 2018, DFI revenue increased 4% to $11.75B. Net income decreased 77% to $92M, from $402M prior year. This large drop in net profit is probably the bomb that imploded DFI’s share price.

The company took a $453M restructuring charge for the Food business in South East Asia. Management impaired the goodwill, assets and lease associated with, especially, Giant

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