Dairy Farm's profit surged 13% to US$506 in 2012

But Singapore segment had slightly disappointing results.

According to a release, Dairy Farm's sales, including 100% of associates and joint ventures, increased by 10% to US$11.5 billion in 2012. Underlying profit for the year was US$447 million compared with US$474 million in 2011. 

The 2012 figure reflects the reversal from underlying profit of US$59 million of supplier income in Malaysia that had been incorrectly recognized over the past few years.

Adjusted underlying profit, which excludes the effects of the reversed supplier income, rose from US$450 million in 2011 to US$506 million in 2012, an increase of 13%.

Underlying earnings per share were US¢33.14, a decrease of 6%, or if the effect of the reversal of the supplier income is excluded, US¢37.48, an increase of 13%.

The profit attributable to shareholders in 2012, after taking into consideration the effect of the reversal, was US$450 million, including a non-trading gain of US$3 million arising mainly from the disposal of retail properties in Singapore.

The comparable results in 2011 benefited from a non-trading gain of US$10 million.

In Hong Kong, Mannings health and beauty stores delivered another impressive result and Wellcome supermarkets traded well. IKEA in both Hong Kong and Taiwan also reported good growth.

The supermarket and hypermarket businesses in Malaysia faced challenging market conditions, while the Guardian health and beauty chain traded satisfactorily.

In Indonesia, hypermarkets and supermarkets continued to perform well, as did the health and beauty business. Operating results from Singapore were slightly below last year in the face of increased costs and sluggish economic conditions.

Its restaurant associate, Maxim’s delivered another strong set of results. Of new businesses, the supermarkets in Cambodia are trading well while progress is being made in the Philippines.

The Group’s financial position remains healthy with net cash at the end of 2012 up US$55 million at US$521 million. This increase includes the net proceeds of US$139 million arising from the placement of shares in PT Hero, and is after allowing for higher dividends, capital expenditure of US$358 million for organic growth of the business, and US$144 million for investments.

The Board is recommending a final dividend of US¢16.50 per share, bringing the total ordinary dividend for 2012 to US¢23.00 per share, up 10%.