The Group’s investments in Yonghui and Robinsons Retail delivered good returns with Dairy Farm’s share of results from both companies growing in 2019.
Dairy Farm owns a 19.99% stake in Yonghui Superstores, a leading grocery retailer in China with over 1,300 stores. In November 2018, Dairy Farm also acquired a 20% stake in Robinsons Retail, one of the largest multi-format retailers in the Philippines.
Yonghui delivered strong sales growth in the year, driven largely by store openings, while also achieving positive like-for-like sales. Underlying profit growth was strong due to the partial sell-down of the investment in the Yunchuang digital business as well as lower cost from employee share incentive expenses.
Reported profitability for Robinsons Retail in 2019 was impacted by the adoption of IFRS 16 as its profits in 2018 were not adjusted for the new lease accounting standard. Underlying profit before interest, tax, depreciation and amortisation increased by double-digit percentage.