Announcement
7th March 2024
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
DFI RETAIL GROUP HOLDINGS LIMITED
2023 PRELIMINARY ANNOUNCEMENT OF RESULTS
Highlights
·
Substantial improvement in underlying
profit
·
Subsidiaries' performance driven by recovery in
Health and Beauty and Convenience
·
Associates' performance supported by Maxim's
recovery
·
Final dividend of US¢5.00 per share
"The Group has been encouraged by
the significant improvement in performance in 2023. The
recovery in economic activity following the pandemic has, however,
brought about changes in customer behaviours to which the Group is
still adapting. In addition, higher interest rates,
inflationary pressures and a broader economic slowdown on the
Chinese mainland are likely to lead to slower growth in 2024.
Nonetheless, with the appointment of Scott Price as Group Chief
Executive, we are confident in the Group's long-term strategy to
deliver the medium- and long-term growth prospects of the
Group."
Ben Keswick
Chairman
Results
|
|
|
Year
ended 31st December
|
|
|
|
|
2023
US$m
|
|
2022
US$m
|
|
Change
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
9,170
|
|
9,174
|
|
-
|
Underlying profit attributable to
shareholders*
|
|
155
|
|
29
|
|
+437
|
Profit/(loss) attributable to
shareholders
|
|
32
|
|
(115)
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US¢
|
|
US¢
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying earnings per
share*
|
|
11.49
|
|
2.14
|
|
+437
|
Earnings/(loss) per
share
|
|
2.39
|
|
(8.51)
|
|
n/a
|
Dividends per share
|
|
8.00
|
|
3.00
|
|
+167
|
|
|
|
|
|
|
|
* the
Group uses 'underlying profit' in its internal financial reporting
to distinguish between ongoing business performance and
non-trading items, as more fully described
in note 37 to the financial statements. Management considers
this to be a key measure which provides additional information to
enhance understanding of the Group's underlying business
performance.
|
The final dividend of US¢5.00 per
share will be payable on 15th May 2024, subject to approval at the
Annual General Meeting to be held on 8th
May 2024, to shareholders on the register of
members at the close of business on 22nd March
2024.
DFI RETAIL GROUP
HOLDINGS LIMITED
PRELIMINARY
ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED
31ST DECEMBER 2023
OVERVIEW
Following a number of challenging years for the
business in a disrupted environment, DFI Retail Group (the 'Group')
reported substantially improved performance in 2023. The
Group reported total underlying profit attributable to shareholders
of US$155 million for the year, an increase of US$126 million
compared to the prior year. This profit
improvement was driven both by subsidiaries and
associates.
OPERATING PERFORMANCE
Total 2023 revenue for the Group, including 100% of
associates and joint ventures, was US$26.5 billion, slightly behind
2022 levels. Strong revenue growth in Health and Beauty and
Convenience was offset by lower sales within Food and Home
Furnishings. Total subsidiary revenue was US$9.2 billion,
broadly in line with the prior year, or 5% higher for ongoing
businesses (excluding the impact of the Malaysia Grocery Retail
divestment).
The Group's underlying profit attributable to
shareholders was US$155 million, a substantial improvement from the
US$29 million reported in the prior year. Within
subsidiaries, profitability was supported by strong recovery in the
Health and Beauty and Convenience divisions. The increased
contribution by associates was driven by improvement at Maxim's and
reduced losses from Yonghui. There was a non-trading loss
attributable to shareholders of US$123 million, predominantly due
to a goodwill impairment in respect of the Macau business and Giant
Singapore, and foreign exchange losses associated with the
divestment of the Malaysia Grocery Retail business. These
losses were partially offset by gains from property divestments,
resulting in total reported profits attributable to shareholders of
US$32 million.
Operating cash flow for the period, after lease
payments, was a net inflow of US$419 million, compared with US$279
million in 2022. As at 31st December 2023, the Group's net
debt was US$618 million, compared with US$866 million at 31st
December 2022.
The Board recommends a final dividend for 2023 of
US¢5.00 per share (2022 final dividend: US¢2.00).
PEOPLE
Scott Price succeeded Ian McLeod as Group Chief
Executive with effect from 1st August 2023. We wish to thank
Ian for his contribution during his six years as Group Chief
Executive, when he led a comprehensive business transformation of
DFI Retail Group to strengthen its customer propositions.
Anthony Nightingale retired from the Board and Audit Committee on
31st January 2024 and we would like to thank him for his
contribution to the Company over many years. We are pleased
to welcome Weiwei Chen, an Independent Non-Executive Director of
the Company, as Chair of the Audit Committee in place of Anthony
Nightingale with effect from 31st January 2024. As a result
of this appointment, the Audit Committee now has a majority of
independent Non-Executive Directors as members.
PROSPECTS
The Group has been encouraged by the significant
improvement in performance in 2023. The recovery in economic
activity following the pandemic has, however, brought about changes
in customer behaviours to which the Group is still adapting.
In addition, high interest rates, inflationary pressures and a
broader economic slowdown on the Chinese mainland are likely to
lead to the rate of growth in the Group's performance reducing
substantially in 2024 compared to that of 2023. Nonetheless,
we remain confident in the medium- and long-term growth prospects
of the Group.
Ben Keswick
Chairman
GROUP CHIEF
EXECUTIVE'S REVIEW
INTRODUCTION
It is both a pleasure and a privilege to join DFI
Retail Group as Group Chief Executive. I am excited to be
part of an organisation with such a long history and which plays
such an important role in serving all of the communities where it
operates.
The past few years have been very challenging for
the Group, our customers, team members and shareholders. Post
the pandemic, there is a need to reset DFI and align the business
to a strategic framework focussed on capital allocation priorities
and growth plans that will improve performance over the coming
years. I believe this realignment of the organisation will
generate enhanced returns for shareholders.
Overall financial performance in 2023 has been
encouraging. Total underlying profit attributable to
shareholders was US$155 million for the year, an increase of US$126
million compared to the prior year. There remains a
significant opportunity, however, to continue to build on this
profit recovery. I am confident that, with the right focus on
our customers, team members and shareholders, as well as the right
balance of local autonomy and centralised scale, we will gain share
from our competitors and sustainably grow returns for our
shareholders.
STRATEGIC
FRAMEWORK
Since joining the Group in August,
I have visited all our markets and formats, meeting team members
and learning about our business and customers. This has been
a great opportunity to receive input and I have been impressed by
the energy our team members bring to serving our customers.
Over the course of this period, a new strategic framework has been
introduced: Customer First, People
Led, Shareholder Driven. An aligned strategic
framework is crucial to supporting the Group's capital allocation
priorities and growth plans over the coming three to five
years.
Customer
First
As a leading retailer across
multiple formats in the markets where we operate, we must evolve at
the same pace as our customers' changing shopping behaviours.
While significant progress has been made over the past few years in
enhancing retail fundamentals within the Group, there remain
opportunities to improve local relevance across our assortment, Own
Brand mix, store execution and design. Additionally, we
are resetting our approach to creating a digital proposition across
the businesses that is significantly less margin dilutive yet
protects our future market share.
People Led
As a People Led organisation, we
are focussed on deeply embedding our values throughout the Group,
speeding up decision making and improving Inclusion, Equity and
Diversity to ensure local relevancy of decision-making to
customers. Our team members are closest to the views of our
customers and their voices must be heard.
Shareholder Driven
We have committed to driving
improved shareholder returns. We must win with customers, but
do this through a disciplined capital and resource allocation model
that creates sustainable returns as well achievement of our
Environmental, Social and Governance ('ESG')
commitments.
ORGANISATION STRUCTURE
An important milestone achieved
over the course of the second half of 2023 was the alignment of our
organisation structure to the new strategic framework. Our
customers, competitors and the markets in which we operate are
changing. We must ensure our organisation is prepared to meet
the challenge. Decisions that impact our customers must be
made close to the customer. Centralised services must add
value to the banners through scale and expertise, all delivered
through a lean overheads model. We will invest only where our
business leaders commit to delivering attractive returns. Based
upon these principles, we have moved accountability to a format
structure across Food, Health and Beauty, Convenience and Home
Furnishings, removing the regional layer. By moving to a
format structure, each of our formats will optimise the assortment,
digital proposition and store design principles to deliver service,
quality and value to our customers in a more consistent manner that
can also be tailored to the format's individual
strategies.
Aligned to the format structure is
a new go-to-market digital strategy. Driving Digital has been
a key strategic focus for DFI Retail Group during the past several
planning periods and will continue and intensify. We need,
however, to revise our strategy based on the post-COVID needs of
our customers. The end goal is to provide them with great choice
and service at an affordable price, capturing potential
opportunities and creating greater synergies between our stores and
online businesses. Consequently, accountability for the
technology function, the yuu Rewards business and the Digital
function has been split. This will enable us to create
greater focus on these three important strategic areas and support
the creation of a Customer First digital proposition.
2023 PERFORMANCE
The Group reported total revenue from subsidiaries
in 2023 of US$9.2 billion, broadly in line with the prior
year. Total revenue for the Group, including 100% of
associates and joint ventures, was US$26.5 billion, slightly behind
2022 levels.
The Group reported a subsidiaries underlying profit
attributable to shareholders of US$112 million for the full year,
over 70% higher than the prior year. Profit from associates
was US$43 million, US$78 million higher than the prior year.
Total underlying profit attributable to shareholders was US$155
million for the year, an increase of US$126 million compared to the
prior year.
Our Health and Beauty business reported over 20%
sales growth and nearly 130% profit growth for the full year,
driven by traffic recovery from markets reopening and gross margin
improvement. Recovery of customer foot traffic also supported
strong profit growth for our Convenience division, which grew 74%
compared to the prior year.
Food profit reduced relative to the prior
year. Within North Asia, first half performance was impacted
by the absence of pantry-stocking seen during the fifth wave of
COVID in Hong Kong in the equivalent period last year.
However, North Asia Food performance improved in the second half
and profit during that period also increased compared to the prior
year. South East Asia Food financial performance was
adversely affected by intense competition and weakening consumer
sentiment caused by rising cost of living pressures.
IKEA saw like-for-like ('LFL') sales decline due to
reduced home renovation and furniture demand, as a result of a
softening in property market sentiment caused by higher interest
rates. Profit also fell, primarily as a result of the revenue
shortfall.
The Group's share of underlying profits from
associates was US$43 million, representing a US$78 million increase
from the prior year. Maxim's reported strong recovery with
its share of underlying profit more than doubling relative to the
prior year, as customers returned to dining out. The Group's
share of Yonghui's underlying losses was US$36 million, an
improvement relative to the prior year. Robinsons Retail
reported good underlying business performance but its contribution
to the Group's profits reduced due to foreign exchange losses and
higher net financing charges.
The Group reported strong
operating cash flow after lease payments of US$419 million, 50%
higher than the US$279 million reported in the prior year.
Operating cash flow after lease payments and normal capital
expenditure was US$222 million, over six times higher than the
US$35 million reported in 2022.
ENVIRONMENTAL, SOCIAL, GOVERNANCE ('ESG')
The growing awareness of the
impact from climate change has sparked a global movement towards
sustainable practices and environmental responsibility. As a
leading pan-Asian retailer, we have the unique opportunity to
contribute to and be part of the solution. Indeed, being part
of the solution is an important component of our Customer First,
People Led and Shareholder Driven strategic framework.
The Group's strong commitment to
ESG is reflected in our three strategic pillars: serving
communities, sustaining the planet, and sourcing responsibly across
the markets in which we operate. In November, the Group's
greenhouse gas emissions targets were validated by the Science
Based Targets initiative ('SBTi'). We became one of the first
Asian retailers to receive validation from the SBTi for its
near-term emissions reduction targets, aligned with its criteria
and recommendations. The validated targets cover Scope 1,
Scope 2, and Scope 3 greenhouse gas ('GHG') emissions. For
Scope 1 and 2, the committed target is to reduce half emissions by
2030. DFI has also pledged separately to achieve net-zero
emissions by 2050, with an annual investment plan to achieve this
long-term goal. SBTi has also validated DFI's Scope 3
emissions reduction target, focussing on purchased goods and
services (category 1) as well other significant
categories.
DFI has also achieved a
significant improvement in its independent ESG Risk Rating from
Morningstar Sustainalytics, a leading global ESG rating provider,
with our score improving from 25.3 in 2022 to 22.9 in 2023.
This represents a ranking improvement from top 50% to top 29% in
the Global Food Retail sub-industry. DFI's overall management
score from Sustainalytics, which assesses the robustness of a
company's ESG programmes, practices, and policies, is also rated as
'Strong'. This improvement represents external validation of
the strong ESG management efforts that have been made by the Group,
despite above-average risk exposure for the sub-industry.
These efforts have included proactive climate risk management in
line with Task Force on Climate related Financial Disclosures
('TCFD') recommendations and auditing of supply chains against
ethical standards.
I am personally passionate about
this topic and the achievement of our ESG objectives, particularly
our emissions reduction targets, is a core focus of the leadership
team. Whilst the journey will not be easy, we believe it is
necessary and we will continue to drive the organisation to be a
change agent in the markets that we serve.
BUSINESS REVIEW
FOOD
Reported sales revenue for the
Food division in 2023 was US$3.3 billion. Excluding the
impact of the Malaysia Grocery Retail divestment, revenue for the
division reduced by 5%. Underlying operating profit for the
division was US$45 million for the year, compared to US$91 million
in the prior year.
Wellcome's LFL sales growth in the
first half of 2023 was adversely affected by the absence this year
of the pantry stocking behaviour that occurred during the fifth
wave of COVID in Hong Kong in the equivalent period last
year. LFL sales momentum improved in the second half.
Nevertheless, the rising frequency of travel from Hong Kong
residents into the Chinese mainland is now impacting shopping
behaviour, particularly during weekends. Despite the
challenges, the Wellcome team continued to execute well in stores,
which has supported continued market share gains. While
Wellcome profitability reduced in the first half of the year,
strong margin and cost control contributed to profit growth in the
second half relative to the prior year. Digital growth
remains a priority for the Wellcome team and the wellcome.com.hk website launched in
October 2023, in addition to the existing app. The
yuu Rewards programme in
Hong Kong also continues to grow, and now has 4.9 million
members.
South East Asia Food sales
performance was adversely affected by intense competition and
weakening consumer sentiment caused by cost-of-living
pressures. Profitability was impacted by soft sales as well
as rising cost pressures, particularly labour costs. Growing
the contribution from digital sales has remained a key focus area
for the management team. The yuu Rewards programme in Singapore,
which was launched in October 2022, has now reached 1.5 million
members, with the Food banners leading the programme in terms of
transaction penetration. In September 2023, the Singapore
Food business also launched one hour delivery in partnership with
Foodpanda, with initial encouraging results.
In March 2023, the Group completed
the divestment of its Malaysia Grocery Retail business. The
sale of all six associated properties in Malaysia completed in the
second half of 2023.
CONVENIENCE
Total Convenience sales were
US$2.4 billion, an increase of 8% compared to the prior year.
LFL sales grew 5% compared to the prior year. Convenience
underlying operating profit was US$88 million for the year, an
increase of 74% compared to the prior year.
Within Hong Kong, LFL sales were
strong in the first half, as revenues were adversely impacted by
the fifth COVID wave in the first half of 2022. LFL sales in
the second half were broadly in line with the prior year, as sales
were impacted by the rising frequency of outbound travel from Hong
Kong residents, particularly during weekends. Operating
profit improved strongly due to a favourable shift in mix away from
cigarette sales, as well as ongoing strong cost control.
7-Eleven South China reported
double-digit LFL sales growth, as the business benefitted from the
economy reopening. Strong execution of promotional campaigns
and ongoing strong digital sales also supported revenue
growth. Profit increased significantly as a result of strong
LFL sales growth, favourable margin impact from product mix shift
and ongoing strong cost control.
7-Eleven Singapore also reported
strong LFL sales growth, as the business continued to benefit from
the economy reopening and strong in-store execution. Profit
almost doubled, despite labour and utility cost
pressures.
HEALTH AND BEAUTY
Health and Beauty division revenue
increased by 21% to US$2.4 billion, with LFL sales growing by over
20%. Underlying operating profit increased by 127%, to US$213
million for the year.
In Hong Kong, the Mannings
business benefitted from the recovery in the economy and increased
tourism traffic. LFL sales were consistently strong over the
course of the year and the team continues to execute well in
stores, which supported positive market share momentum.
Healthcare as a category performed strongly, representing over 50%
of Mannings' revenue. Mannings' profit increased
significantly due to strong sales growth, gross margin expansion,
operating leverage and ongoing strong cost control. In Macau,
Mannings also reported double-digit LFL growth, which supported
strong profit growth.
Guardian's sales performance in
South East Asia was driven by LFL sales growth in Indonesia and
Malaysia, although growth did slow in the second half.
Guardian's profit also increased significantly in the year.
Strong profit growth was reported across all key markets, supported
by gross margin expansion and operating leverage. Performance
in Indonesia was driven by a recovery in mall traffic, increased
demand for beauty products and strong execution of marketing and
promotion campaigns in stores. Malaysia performance was
supported by strong marketing campaign execution, competitive
healthcare pricing and range innovation. Strong commercial
execution and changes in product mix supported gross margin
expansion in Singapore. During the year, Guardian continued
to grow its store network and opened 138 stores. Driving
digital growth was also a focus, with e-commerce orders growing
over 70% compared to the prior year and fulfillment capability
upgraded in both Singapore and Malaysia.
HOME FURNISHINGS
IKEA reported sales revenue of
US$794 million, 5% behind the prior year. Overall, LFL sales
reduced by 7% in 2023. Operating profit was US$19 million,
US$27 million behind the prior year.
IKEA's business performance in its
markets has been hampered by a combination of changing customer
behaviours post COVID and weak property market activity across our
markets. LFL sales performance has been driven by reduced
customer traffic, which impacted the business more as the year
progressed. Despite strong cost control measures in place,
the challenging sales environment materially affected IKEA's level
of profit.
Despite the challenging external
environment in the short term, the IKEA team continues to invest
judiciously for the long-term. In May 2023, the new IKEA
Taiwan fulfillment centre became fully operational, providing a key
foundation for future e-commerce growth in Taiwan. Supported
by enhanced fulfillment capabilities, e-commerce penetration in
Taiwan has now increased to over 9%. In 2023, three small
store concepts were opened in Hong Kong, with encouraging initial
performance to date. The formats will provide IKEA with an
opportunity to test and experiment new growth drivers over the
coming years.
RESTAURANTS
The Group's overall share of
Maxim's underlying profits was US$79 million for the full year,
more than double the US$38 million contribution in the prior
year. The growth in profit reflects the substantial business
recovery in Hong Kong and the Chinese Mainland following the full
reopening of their economies, as well as a favourable performance
in South East Asia. Maxim's reported strong restaurant
growth, as well as solid mooncake sales in the year.
Maxim's continued to expand in the
year and reached the milestone of its 2,000th store in
December. In March 2023, Maxim's opened its first Shake Shack
store in Thailand and has subsequently opened its first The
Cheesecake Factory store in the country in early
December.
OTHER ASSOCIATES
The Group's share of Yonghui's
underlying losses was US$36 million for the year, compared to a
US$80 million share of underlying losses in the prior year.
The reduction in losses was underpinned by an improvement in gross
margin as well as cost optimisation. Nevertheless, Yonghui's
sales performance in the year has been impacted by a combination of
challenging macroeconomic conditions and intense
competition.
Robinsons Retail's underlying
profit contribution reduced from US$24 million to US$15 million.
Robinsons Retail continued to report strong sales and core
net earnings growth. For reporting purposes, however, DFI's
share of underlying profits was adversely impacted by foreign
exchange losses and higher net financing charges reported by
Robinsons Retail.
OUTLOOK
The reopening of economies
following the pandemic has had a positive overall impact on the
Group's financial performance in 2023. Customer behaviours
are, however, rapidly evolving and the Group is dynamically
adapting to changing market conditions. In our home market of
Hong Kong, for example, we have seen increased levels of outbound
travel, particularly into the Chinese Mainland over weekends and
public holidays. There remain additional market challenges
such as high interest rates, inflationary and wage pressures and
uncertainty as to the impact these factors will have on consumer
sentiment. Nevertheless, I am confident in the short-,
medium- and longer-term prospects of the Group and believe we have
put in place strong foundations to drive sustainable growth and
shareholder returns over the coming years.
Scott Price
Group Chief Executive
|
DFI Retail Group
Holdings Limited
Consolidated Profit
and Loss Account
for the year ended
31st December 2023
|
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|
2023
|
|
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|
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
Underlying
business
performance
US$m
|
|
|
|
Non-
trading
items
US$m
|
|
|
|
|
Total
US$m
|
|
Underlying
business
performance
US$m
|
|
|
|
Non-
trading
items
US$m
|
|
|
|
|
Total
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
|
|
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|
|
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|
Revenue (note 2)
|
|
|
9,169.9
|
|
|
|
-
|
|
|
|
|
9,169.9
|
|
|
|
|
9,174.2
|
|
|
|
-
|
|
|
|
|
9,174.2
|
|
|
Net operating costs
(note
3)
|
|
|
(8,876.1)
|
|
|
|
(131.2)
|
|
|
|
|
(9,007.3)
|
|
|
|
|
(8,965.0)
|
|
|
|
35.1
|
|
|
|
|
(8,929.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(note
4)
|
|
|
293.8
|
|
|
|
(131.2)
|
|
|
|
|
162.6
|
|
|
|
|
209.2
|
|
|
|
35.1
|
|
|
|
|
244.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
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|
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|
|
|
|
Financing charges
|
|
|
(151.8)
|
|
|
|
-
|
|
|
|
|
(151.8)
|
|
|
|
|
(126.4)
|
|
|
|
-
|
|
|
|
|
(126.4)
|
|
|
Financing income
|
|
|
7.9
|
|
|
|
-
|
|
|
|
|
7.9
|
|
|
|
|
4.8
|
|
|
|
-
|
|
|
|
|
4.8
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
Net financing charges (note 5)
|
|
|
(143.9)
|
|
|
|
-
|
|
|
|
|
(143.9)
|
|
|
|
|
(121.6)
|
|
|
|
-
|
|
|
|
|
(121.6)
|
|
|
Share of results of associates and
joint ventures (note
6)
|
|
|
43.4
|
|
|
|
9.2
|
|
|
|
|
52.6
|
|
|
|
|
(34.9)
|
|
|
|
(177.1)
|
|
|
|
|
(212.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
|
|
193.3
|
|
|
|
(122.0)
|
|
|
|
|
71.3
|
|
|
|
|
52.7
|
|
|
|
(142.0)
|
|
|
|
|
(89.3)
|
|
|
Tax (note 7)
|
|
|
(41.9)
|
|
|
|
1.0
|
|
|
|
|
(40.9)
|
|
|
|
|
(31.4)
|
|
|
|
0.1
|
|
|
|
|
(31.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) after tax
|
|
|
151.4
|
|
|
|
(121.0)
|
|
|
|
|
30.4
|
|
|
|
|
21.3
|
|
|
|
(141.9)
|
|
|
|
|
(120.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
|
154.7
|
|
|
|
(122.5)
|
|
|
|
|
32.2
|
|
|
|
|
28.8
|
|
|
|
(143.4)
|
|
|
|
|
(114.6)
|
|
|
Non-controlling
interests
|
|
|
(3.3)
|
|
|
|
1.5
|
|
|
|
|
(1.8)
|
|
|
|
|
(7.5)
|
|
|
|
1.5
|
|
|
|
|
(6.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
151.4
|
|
|
|
(121.0)
|
|
|
|
|
30.4
|
|
|
|
|
21.3
|
|
|
|
(141.9)
|
|
|
|
|
(120.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US¢
|
|
|
|
|
|
|
|
|
US¢
|
|
|
|
|
US¢
|
|
|
|
|
|
|
|
|
US¢
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
share
(note 8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- basic
|
|
|
11.49
|
|
|
|
|
|
|
|
|
2.39
|
|
|
|
|
2.14
|
|
|
|
|
|
|
|
|
(8.51)
|
|
|
- diluted
|
|
|
11.43
|
|
|
|
|
|
|
|
|
2.38
|
|
|
|
|
2.14
|
|
|
|
|
|
|
|
|
(8.48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DFI Retail Group
Holdings Limited
Consolidated
Statement of Comprehensive Income
for the year ended
31st December 2023
|
|
|
|
|
|
|
|
2023
US$m
|
|
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the year
|
|
|
|
|
30.4
|
|
|
|
|
|
(120.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to profit or
loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of defined benefit plans
|
|
|
|
|
(1.7)
|
|
|
|
|
|
1.3
|
|
|
Net revaluation surplus before transfer to
investment properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- tangible assets
|
|
|
|
|
1.5
|
|
|
|
|
|
-
|
|
|
- right-of-use assets
|
|
|
|
|
63.2
|
|
|
|
|
|
38.2
|
|
|
Tax relating to items that will not be
reclassified
|
|
|
|
|
0.3
|
|
|
|
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63.3
|
|
|
|
|
|
39.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of other
comprehensive income of associates and joint ventures
|
|
|
|
|
2.4
|
|
|
|
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65.7
|
|
|
|
|
|
41.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to
profit or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exchange translation differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- net loss arising during the year
|
|
|
|
|
(15.2)
|
|
|
|
|
|
(163.0)
|
|
|
- transfer to profit and loss
|
|
|
|
|
48.7
|
|
|
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33.5
|
|
|
|
|
|
(158.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- net gain arising during the year
|
|
|
|
|
6.7
|
|
|
|
|
|
35.4
|
|
|
- transfer to profit and loss
|
|
|
|
|
(34.3)
|
|
|
|
|
|
(4.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(27.6)
|
|
|
|
|
|
31.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax relating to items that may be reclassified
|
|
|
|
|
1.2
|
|
|
|
|
|
(1.4)
|
|
|
Share of other comprehensive
expense of associates and joint ventures
|
|
|
|
|
(3.0)
|
|
|
|
|
|
(1.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
|
|
|
|
(131.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(expense) for the year,
net of tax
|
|
|
|
|
69.8
|
|
|
|
|
|
(90.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
100.2
|
|
|
|
|
|
(210.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Company
|
|
|
|
|
96.8
|
|
|
|
|
|
(205.1)
|
|
|
Non-controlling interests
|
|
|
|
|
3.4
|
|
|
|
|
|
(5.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.2
|
|
|
|
|
|
(210.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DFI Retail Group
Holdings Limited
Consolidated
Balance Sheet
at 31st December
2023
|
|
|
|
|
|
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets
|
|
|
|
|
|
|
289.6
|
|
|
|
411.9
|
|
Tangible assets
|
|
|
|
|
|
|
708.1
|
|
|
|
802.9
|
|
Right-of-use assets
|
|
|
|
|
|
|
2,662.3
|
|
|
|
2,670.1
|
|
Investment properties
|
|
|
|
|
|
|
122.2
|
|
|
|
39.8
|
|
Associates and joint ventures
|
|
|
|
|
|
|
1,793.7
|
|
|
|
1,781.4
|
|
Other investments
|
|
|
|
|
|
|
6.7
|
|
|
|
21.7
|
|
Non-current debtors
|
|
|
|
|
|
|
102.2
|
|
|
|
124.3
|
|
Deferred tax assets
|
|
|
|
|
|
|
35.8
|
|
|
|
27.3
|
|
Pension assets
|
|
|
|
|
|
|
4.4
|
|
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
5,725.0
|
|
|
|
5,886.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stocks
|
|
|
|
|
|
|
763.5
|
|
|
|
871.4
|
|
Current debtors
|
|
|
|
|
|
|
256.3
|
|
|
|
252.9
|
|
Current tax assets
|
|
|
|
|
|
|
15.1
|
|
|
|
19.5
|
|
Cash and bank balances
|
|
|
|
|
|
|
303.4
|
|
|
|
230.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,338.3
|
|
|
|
1,374.5
|
|
Assets held for sale (note 10)
|
|
|
|
|
|
|
47.8
|
|
|
|
65.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
1,386.1
|
|
|
|
1,440.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current creditors
|
|
|
|
|
|
|
(2,095.9)
|
|
|
|
(2,169.7)
|
|
Current borrowings
|
|
|
|
|
|
|
(771.1)
|
|
|
|
(837.5)
|
|
Current lease liabilities
|
|
|
|
|
|
|
(562.0)
|
|
|
|
(586.3)
|
|
Current tax liabilities
|
|
|
|
|
|
|
(39.7)
|
|
|
|
(39.9)
|
|
Current provisions
|
|
|
|
|
|
|
(38.9)
|
|
|
|
(40.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,507.6)
|
|
|
|
(3,673.6)
|
|
Liabilities associated with assets held for sale
(note 10)
|
|
|
|
|
|
|
(19.8)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
(3,527.4)
|
|
|
|
(3,673.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net current liabilities
|
|
|
|
|
|
|
(2,141.3)
|
|
|
|
(2,233.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings
|
|
|
|
|
|
|
(153.0)
|
|
|
|
(258.7)
|
|
Non-current lease liabilities
|
|
|
|
|
|
|
(2,285.8)
|
|
|
|
(2,289.4)
|
|
Deferred tax liabilities
|
|
|
|
|
|
|
(41.2)
|
|
|
|
(40.0)
|
|
Pension liabilities
|
|
|
|
|
|
|
(6.2)
|
|
|
|
(5.8)
|
|
Non-current creditors
|
|
|
|
|
|
|
(3.7)
|
|
|
|
(8.7)
|
|
Non-current provisions
|
|
|
|
|
|
|
(105.7)
|
|
|
|
(108.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
(2,595.6)
|
|
|
|
(2,711.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
988.1
|
|
|
|
941.4
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
|
75.2
|
|
|
|
75.2
|
|
Share premium and capital reserves
|
|
|
|
|
|
|
72.8
|
|
|
|
67.6
|
|
Revenue and other reserves
|
|
|
|
|
|
|
832.2
|
|
|
|
804.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' funds
|
|
|
|
|
|
|
980.2
|
|
|
|
947.1
|
|
Non-controlling interests
|
|
|
|
|
|
|
7.9
|
|
|
|
(5.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
988.1
|
|
|
|
941.4
|
|
|
DFI Retail Group
Holdings Limited
Consolidated
Statement of Changes in Equity
for the year ended
31st December 2023
|
|
|
|
Share
capital
US$m
|
|
Share
premium
US$m
|
|
Capital
reserves
US$m
|
|
Revenue
and
other
reserves
US$m
|
|
Attributable to shareholders of the Company
US$m
|
|
Attributable to non-controlling
interests
US$m
|
|
Total
equity
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1st January
|
75.2
|
|
37.6
|
|
30.0
|
|
804.3
|
|
947.1
|
|
(5.7)
|
|
941.4
|
Total comprehensive
income
|
-
|
|
-
|
|
-
|
|
96.8
|
|
96.8
|
|
3.4
|
|
100.2
|
Dividends paid by the Company
(note 11)
|
-
|
|
-
|
|
-
|
|
(67.3)
|
|
(67.3)
|
|
-
|
|
(67.3)
|
Share-based long-term incentive
plans
|
-
|
|
-
|
|
12.4
|
|
-
|
|
12.4
|
|
-
|
|
12.4
|
Shares purchased for a share-based
long-term incentive plan
|
-
|
|
-
|
|
-
|
|
(9.7)
|
|
(9.7)
|
|
-
|
|
(9.7)
|
Subsidiaries disposed of
(note 12(d))
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10.2
|
|
10.2
|
Change in interests in associates
and joint ventures
|
-
|
|
-
|
|
-
|
|
0.9
|
|
0.9
|
|
-
|
|
0.9
|
Transfer
|
-
|
|
2.0
|
|
(9.2)
|
|
7.2
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31st December
|
75.2
|
|
39.6
|
|
33.2
|
|
832.2
|
|
980.2
|
|
7.9
|
|
988.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1st January
|
75.2
|
|
35.6
|
|
24.6
|
|
1,131.8
|
|
1,267.2
|
|
-
|
|
1,267.2
|
Total comprehensive
income
|
-
|
|
-
|
|
-
|
|
(205.1)
|
|
(205.1)
|
|
(5.5)
|
|
(210.6)
|
Dividends paid by the Company
(note 11)
|
-
|
|
-
|
|
-
|
|
(100.9)
|
|
(100.9)
|
|
-
|
|
(100.9)
|
Dividends paid to non-controlling
interests
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.2)
|
|
(0.2)
|
Unclaimed dividends
forfeited
|
-
|
|
-
|
|
-
|
|
0.1
|
|
0.1
|
|
-
|
|
0.1
|
Share-based long-term incentive
plans
|
-
|
|
-
|
|
7.4
|
|
-
|
|
7.4
|
|
-
|
|
7.4
|
Shares purchased for a share-based
long-term incentive plan
|
-
|
|
-
|
|
-
|
|
(20.0)
|
|
(20.0)
|
|
-
|
|
(20.0)
|
Change in interests in associates
and joint ventures
|
-
|
|
-
|
|
-
|
|
(1.6)
|
|
(1.6)
|
|
-
|
|
(1.6)
|
Transfer
|
-
|
|
2.0
|
|
(2.0)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31st December
|
75.2
|
|
37.6
|
|
30.0
|
|
804.3
|
|
947.1
|
|
(5.7)
|
|
941.4
|
|
Revenue and other reserves at 31st
December 2023 comprised revenue reserves of US$1,088.3 million
(2022: US$1,127.2
million), hedging reserves of US$12.2 million
(2022: US$38.6 million), revaluation reserves of US$98.5
million (2022: US$38.2
million) and exchange reserves of US$366.8 million loss
(2022: US$399.7 million
loss).
|
|
DFI Retail Group
Holdings Limited
Consolidated Cash
Flow Statement
for the year ended
31st December 2023
|
|
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (note 4)
|
|
|
162.6
|
|
|
|
244.3
|
|
Depreciation and amortisation
|
|
|
827.2
|
|
|
|
861.0
|
|
Other non-cash items
|
|
|
148.1
|
|
|
|
(40.4)
|
|
Decrease/(increase) in working capital
|
|
|
45.4
|
|
|
|
(6.7)
|
|
Interest received
|
|
|
8.7
|
|
|
|
2.6
|
|
Interest and other financing charges paid
|
|
|
(153.2)
|
|
|
|
(123.3)
|
|
Tax paid
|
|
|
(40.8)
|
|
|
|
(42.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
998.0
|
|
|
|
895.0
|
|
Dividends from associates and joint ventures
|
|
|
45.6
|
|
|
|
44.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
1,043.6
|
|
|
|
939.8
|
|
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of subsidiaries (note 12(a))
|
|
|
-
|
|
|
|
(8.8)
|
|
Purchase of associates and joint ventures
(note 12(b))
|
|
|
(18.4)
|
|
|
|
(8.3)
|
|
Purchase of other investments (note 12(c))
|
|
|
-
|
|
|
|
(10.0)
|
|
Purchase of intangible assets
|
|
|
(22.9)
|
|
|
|
(19.8)
|
|
Purchase of tangible assets
|
|
|
(173.4)
|
|
|
|
(223.9)
|
|
Repayment from/(advances to) associates and joint
ventures
|
|
|
1.2
|
|
|
|
(1.2)
|
|
Sale of subsidiaries (note 12(d))
|
|
|
(23.8)
|
|
|
|
-
|
|
Sale of associates and joint ventures (note 12(e))
|
|
|
-
|
|
|
|
6.9
|
|
Sale of properties (note 12(f))
|
|
|
142.0
|
|
|
|
63.6
|
|
Sale of other tangible assets
|
|
|
0.7
|
|
|
|
0.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
(94.6)
|
|
|
|
(201.0)
|
|
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of shares for a share-based long-term
incentive plan (note
12(g))
|
|
|
(9.7)
|
|
|
|
(20.0)
|
|
Drawdown of borrowings
|
|
|
1,268.9
|
|
|
|
1,429.4
|
|
Repayment of borrowings
|
|
|
(1,486.1)
|
|
|
|
(1,468.7)
|
|
Net increase in other short-term borrowings
|
|
|
51.3
|
|
|
|
92.7
|
|
Principal elements of lease payments
|
|
|
(624.7)
|
|
|
|
(660.6)
|
|
Dividends paid by the Company (note 11)
|
|
|
(67.3)
|
|
|
|
(100.9)
|
|
Dividends paid to non-controlling interests
|
|
|
-
|
|
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
(867.6)
|
|
|
|
(728.3)
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
81.4
|
|
|
|
10.5
|
|
Cash and cash equivalents at 1st January
|
|
|
213.7
|
|
|
|
210.0
|
|
Effect of exchange rate changes
|
|
|
3.1
|
|
|
|
(6.8)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at 31st December
(note 12(h))
|
|
|
298.2
|
|
|
|
213.7
|
|
|
|
|
|
|
|
|
|
|
DFI Retail Group
Holdings Limited
Notes
1. Accounting Policies and
Basis of Preparation
The financial information contained in this
announcement has been based on the audited results for the year
ended 31st December 2023 which have been prepared in conformity
with International Financial Reporting Standards ('IFRS Accounting
Standards'), including International Accounting Standards ('IAS')
and Interpretations as issued by the International Accounting
Standards Board ('IASB').
The Group has adopted the following amendments for
the annual reporting period commencing 1st January 2023.
Disclosure of Accounting Policies - Amendments to
IAS 1 and IFRS Practice Statement 2 (effective from 1st January 2023)
The amendments require entities to disclose material
rather than significant accounting policies. The amendments
define what is 'material accounting policy information' and explain
how to identify when accounting policy information is
material. Material accounting policy information is
information that, when considered together with other information
included in an entity's financial statements, can reasonably be
expected to influence decisions that the primary users of general
purpose financial statements make on the basis of those financial
statements. IASB further clarifies that immaterial accounting
policy information does not need to be disclosed. If it is
disclosed, it should not obscure material accounting
information. To support this amendment, the IASB also amended
IFRS Practice Statement 2 Making Materiality Judgements to provide
guidance on how to apply the concept of materiality to accounting
policy disclosures.
The material accounting policies following the
adoption of IAS 1 are included in a note to the financial
statements in the 2023 Annual Report.
Amendment to IAS 12 - Deferred Tax
related to Assets and Liabilities arising from a Single Transaction
(effective from 1st January
2023)
The amendment requires deferred tax to be recognised
on transactions that, on initial recognition, give rise to equal
amounts of taxable and deductible temporary differences. They
typically apply to transactions such as leases of lessees and
decommissioning obligations and require the recognition of
additional deferred tax assets and liabilities. On adoption
of the amendment, the deferred tax assets and liabilities had been
restated in a note to the financial statements in the 2023 Annual
Report with no impact on the balance sheet.
Amendment to IAS 12 - International
Tax Reform - Pillar Two Model Rules (effective for annual reporting period
commencing on or after 1st January 2023)
The amendment provides a temporary mandatory
exception from deferred tax accounting in respect of Pillar Two
income taxes and certain additional disclosure requirements.
The Group is within the scope of the OECD Pillar Two model rules,
and has applied the amendment from 1st January 2023.
Pillar Two legislation has been enacted or
substantially enacted in certain jurisdictions in which the Group
operates. The legislation will be effective for the Group's
annual reporting period commencing 1st January 2024. Since
the Pillar Two legislation was not effective at 31st December 2023,
the Group has no related current tax exposure.
The Group is in scope of the enacted or
substantively enacted legislation and has performed an assessment of the Group's potential exposure to Pillar Two
income taxes when the legislation comes into effect. The
assessment of the potential exposure to Pillar Two income
taxes is based on the latest financial information for the year
ended 31st December 2023 of the constituent entities in the
Group. Based on the assessment, the effective tax rates in
most of the jurisdictions in which the Group operates are above
15%. However, there are a limited number of jurisdictions
where the effective tax rate is slightly below or close to
15%. The Group does not expect a material exposure to Pillar
Two income taxes in those jurisdictions.
Apart from the above, there are no other amendments
which are effective in 2023 and relevant to the Group's operations,
that have a significant impact on the Group's results, financial
position and accounting policies.
The Group has not early adopted any other standards,
interpretations or amendments that have been issued but not yet
effective.
2. Revenue
|
|
|
|
|
|
2023
US$m
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of goods
|
|
|
|
|
|
|
|
|
Analysis by reportable segment:
|
|
|
|
|
|
|
|
|
Food
|
|
|
|
|
3,285.4
|
|
3,872.4
|
|
Convenience
|
|
|
|
|
2,441.4
|
|
2,266.0
|
|
Health and Beauty
|
|
|
|
|
2,444.8
|
|
2,024.6
|
|
Home Furnishings
|
|
|
|
|
793.7
|
|
839.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,965.3
|
|
9,002.2
|
|
Revenue from other sources
|
|
|
|
|
204.6
|
|
172.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,169.9
|
|
9,174.2
|
|
|
|
|
|
|
|
|
|
Reportable segments are identified on the basis of
internal reports about components of the Group that are regularly
reviewed by the Executive Directors of the Company for the purpose
of resource allocation and performance assessment. DFI Retail
Group operates various divisions: Food, Convenience, Health and
Beauty, Home Furnishings, Restaurants and Other Retailing.
Food represents the grocery retail businesses (including the
Group's associate, Yonghui, a leading grocery retailer in the
Chinese mainland). Convenience is the Group's 7-Eleven
businesses. Health and Beauty comprises the health and beauty
businesses. Home Furnishings is the Group's IKEA
businesses. Restaurants is the Group's associate, Maxim's,
one of Asia's leading food and beverage companies. Other
Retailing represents the department stores, specialty and
Do-It-Yourself ('DIY') stores of the Group's Philippines associate,
Robinsons Retail.
Set out below is an analysis of the Group's revenue
by geographical locations:
|
|
|
|
|
|
2023
US$m
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Asia
|
|
|
|
|
6,675.4
|
|
6,332.2
|
|
South East Asia
|
|
|
|
|
2,494.5
|
|
2,842.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,169.9
|
|
9,174.2
|
|
|
|
|
|
|
|
|
|
The geographical areas covering North Asia and South
East Asia, are determined by the geographical
location of customers. North Asia comprises Hong Kong, the
Chinese mainland, Macau and Taiwan. South East
Asia comprises Singapore, Cambodia,
Malaysia, Indonesia, and Brunei.
3. Net Operating Costs
|
|
|
|
2023
|
|
|
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying business performance US$m
|
|
Non-trading items US$m
|
|
Total US$m
|
|
Underlying business performance US$m
|
|
Non-trading items US$m
|
|
Total US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
(5,957.2)
|
|
-
|
|
(5,957.2)
|
|
(6,108.4)
|
|
-
|
|
(6,108.4)
|
|
Other operating income
|
10.5
|
|
61.0
|
|
71.5
|
|
31.2
|
|
50.5
|
|
81.7
|
|
Selling and distribution
costs
|
(2,412.1)
|
|
-
|
|
(2,412.1)
|
|
(2,402.6)
|
|
-
|
|
(2,402.6)
|
|
Administration and other operating
expenses
|
(517.3)
|
|
(192.2)
|
|
(709.5)
|
|
(485.2)
|
|
(15.4)
|
|
(500.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,876.1)
|
|
(131.2)
|
|
(9,007.3)
|
|
(8,965.0)
|
|
35.1
|
|
(8,929.9)
|
4. Operating Profit
|
|
|
2023
US$m
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis by
reportable segment:
|
|
|
|
|
|
Food
|
|
45.3
|
|
90.9
|
|
Convenience
|
|
87.7
|
|
50.5
|
|
Health and Beauty
|
|
212.5
|
|
93.6
|
|
Home Furnishings
|
|
18.5
|
|
45.5
|
|
|
|
|
|
|
|
|
|
364.0
|
|
280.5
|
|
Selling, general and administrative
expenses*
|
|
(151.9)
|
|
(147.3)
|
|
|
|
|
|
|
|
Underlying operating profit
before IFRS 16+
|
|
212.1
|
|
133.2
|
|
IFRS 16 adjustment‡
|
|
81.7
|
|
76.0
|
|
|
|
|
|
|
|
Underlying operating profit
|
|
293.8
|
|
209.2
|
|
|
|
|
|
|
|
Non-trading items (note 9):
|
|
|
|
|
|
- divestment of Malaysia Grocery Retail business
|
|
(54.4)
|
|
-
|
|
- business restructuring costs
|
|
(12.4)
|
|
(5.8)
|
|
- impairment of intangible assets
|
|
(109.8)
|
|
(6.3)
|
|
- impairment of right-of-use assets
|
|
-
|
|
(2.2)
|
|
- gain on partial disposal of a joint venture
|
|
-
|
|
6.9
|
|
- gain on acquisition of an associate
|
|
-
|
|
11.2
|
|
- profit on sale of properties
|
|
61.0
|
|
31.1
|
|
- change in fair value of an investment property
|
|
(0.6)
|
|
-
|
|
- change in fair value of equity and debt
investments
|
|
(15.0)
|
|
0.2
|
|
|
|
|
|
|
|
|
|
162.6
|
|
244.3
|
|
|
|
|
|
|
* Included costs
incurred for e-commerce development and digital
innovation.
+ This measure of profit and loss is regularly
provided to the management. Property lease payments and
depreciation of reinstatement costs under the lease contracts were
included in the Group's analysis of reportable and geographical
segments' results.
‡ Represented
the reversal of lease payments which were accounted for on a
straight-line basis, adjusted by the lease
contracts recognised under IFRS 16 'Leases', primarily for the
depreciation charge on right-of-use assets.
Set out below is an analysis of the Group's
underlying operating profit by geographical locations:
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Asia
|
|
|
351.5
|
|
|
|
259.7
|
|
|
South East Asia
|
|
|
12.5
|
|
|
|
20.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
364.0
|
|
|
|
280.5
|
|
|
Selling, general and administrative
expenses*
|
|
|
(151.9)
|
|
|
|
(147.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying operating profit
before IFRS 16+
|
|
|
212.1
|
|
|
|
133.2
|
|
|
IFRS 16 adjustment‡
|
|
|
81.7
|
|
|
|
76.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying operating profit
|
|
|
293.8
|
|
|
|
209.2
|
|
* Included costs
incurred for e-commerce development and digital
innovation.
+ This measure of profit and loss is regularly
provided to the management. Property lease payments and
depreciation of reinstatement costs under the lease contracts were
included in the Group's analysis of reportable and geographical
segments' results.
‡ Represented
the reversal of lease payments which were accounted for on a
straight-line basis, adjusted by the lease
contracts recognised under IFRS 16 'Leases', primarily for the
depreciation charge on right-of-use assets.
5. Net Financing Charges
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- bank loans and advances
|
|
|
(49.5)
|
|
|
|
(33.4)
|
|
|
- lease liabilities
|
|
|
(95.9)
|
|
|
|
(86.3)
|
|
|
- other loans
|
|
|
-
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(145.4)
|
|
|
|
(120.2)
|
|
|
Commitment and other fees
|
|
|
(6.4)
|
|
|
|
(6.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing charges
|
|
|
(151.8)
|
|
|
|
(126.4)
|
|
|
Financing income
|
|
|
7.9
|
|
|
|
4.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(143.9)
|
|
|
|
(121.6)
|
|
6. Share of Results of
Associates and Joint Ventures
|
|
|
2023
US$m
|
*
|
2022
US$m
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis by
reportable segment:
|
|
|
|
|
|
|
Food
|
|
(39.4)
|
|
(269.0)
|
|
|
Convenience
|
|
0.3
|
|
-
|
|
|
Health and Beauty
|
|
8.5
|
|
1.4
|
|
|
Restaurants
|
|
77.6
|
|
52.2
|
|
|
Other Retailing
|
|
5.6
|
|
3.4
|
|
|
|
|
|
|
|
|
|
|
|
52.6
|
|
(212.0)
|
|
Share of results in Food segment
included an impairment charge on the Group's interest in
Robinsons Retail which amounted to
US$170.8 million in 2022.
Share of results of associates and joint ventures
included the following gains/(losses) from non-trading items
(note 9):
|
|
|
2023
US$m
|
*
|
2022
US$m
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charge on interest in Robinsons
Retail
|
|
-
|
|
(170.8)
|
|
|
Impairment charge of Yonghui's investments
|
|
(9.8)
|
|
(17.2)
|
|
|
Change in fair value of Maxim's investment
property
|
|
(0.9)
|
|
14.3
|
|
|
Change in fair value of Yonghui's investment
property
|
|
(0.2)
|
|
5.7
|
|
|
Change in fair value of Yonghui's equity
investments
|
|
(0.9)
|
|
(11.9)
|
|
|
Change in fair value of Robinsons Retail's equity
investments
|
|
20.8
|
|
(1.4)
|
|
|
Net gain from divestment of an investment by
Yonghui
|
|
-
|
|
4.1
|
|
|
Net gains from sale of debt investments by Robinsons
Retail
|
|
0.2
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
9.2
|
|
(177.1)
|
|
Results are shown after tax and non-controlling
interests in the associates and joint ventures.
* Included 12 months results from 1st October 2022 to 30th
September 2023 (2022: 1st October
2021 to 30th September 2022) for
Yonghui and Robinsons Retail, based on their latest published
announcements.
7. Tax
|
|
|
2023
US$m
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax charged to profit and loss is analysed as
follows:
|
|
|
|
|
|
Current tax
|
|
(45.8)
|
|
(50.9)
|
|
Deferred tax
|
|
4.9
|
|
19.6
|
|
|
|
|
|
|
|
|
|
(40.9)
|
|
(31.3)
|
|
|
|
|
|
|
|
Tax relating to components of other comprehensive
income/expense is analysed as follows:
|
|
|
|
|
|
Remeasurements of defined benefit plans
|
|
0.3
|
|
(0.2)
|
|
Cash flow hedges
|
|
1.2
|
|
(1.4)
|
|
|
|
|
|
|
|
|
|
1.5
|
|
(1.6)
|
Tax on profits has been calculated
at rates of taxation prevailing in the territories in which the
Group operates. Share of tax charge
of associates and joint ventures of US$23.4 million (2022: US$7.1 million) is included in
share of results of associates and joint ventures.
8. Earnings/(Loss) per
Share
Basic earnings/(loss) per share are
calculated on profit attributable to shareholders of US$32.2
million (2022: loss of US$114.6
million), and on the weighted average number of 1,346.1
million (2022: 1,346.8
million) shares in issue during the year.
Diluted earnings/(loss) per share
are calculated on profit attributable to shareholders of US$32.2
million (2022: loss of US$114.6
million), and on the weighted average number of 1,353.6
million (2022: 1,350.8
million) shares in issue after adjusting for 7.5 million
(2022: 4.0 million) shares
which are deemed to be issued for no consideration under the
share-based long-term incentive plans based on the average share
price during the year.
The weighted average number of shares is arrived at
as follows:
|
|
|
Ordinary shares in
millions
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares in issue
|
|
1,353.6
|
|
1,353.3
|
|
Shares held by a subsidiary of the Group under a
share-based long-term incentive plan
|
|
(7.5)
|
|
(6.5)
|
|
|
|
|
|
|
|
Weighted average number of shares for basic earnings
per share calculation
|
|
1,346.1
|
|
1,346.8
|
|
Adjustment for shares deemed to be issued for no
consideration under the share-based long-term incentive plans
|
|
7.5
|
|
4.0
|
|
|
|
|
|
|
|
Weighted average number of shares
for diluted earnings per share calculation
|
|
1,353.6
|
|
1,350.8
|
Additional basic and diluted earnings/(loss) per
share are also calculated based on underlying profit attributable
to shareholders. A reconciliation of earnings is set out
below:
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$m
|
|
Basic earnings per
share
US¢
|
|
Diluted earnings per
share
US¢
|
|
US$m
|
|
Basic (loss)/
earnings per share
US¢
|
|
Diluted (loss)/
earnings per share
US¢
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) attributable
to shareholders
|
32.2
|
|
2.39
|
|
2.38
|
|
(114.6)
|
|
(8.51)
|
|
(8.48)
|
|
Non-trading items (note 9)
|
122.5
|
|
|
|
|
|
143.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit attributable to shareholders
|
154.7
|
|
11.49
|
|
11.43
|
|
28.8
|
|
2.14
|
|
2.14
|
9. Non-trading Items
Non-trading items are separately identified to
provide greater understanding of the Group's underlying business
performance. Items classified as non-trading items include
fair value gains and losses on equity and debt investments which
are measured at fair value through profit and loss; fair value
gains and losses on revaluations of investment properties; gains
and losses arising from the sale of businesses, investments and
properties; impairment of non-depreciable intangible assets,
properties, and associates and joint ventures; provisions for the
closure of businesses; acquisition-related costs in business
combinations; and other credits and charges of a non-recurring
nature that require inclusion in order to provide additional
insight into underlying business performance.
An analysis of non-trading items in operating profit
and profit/(loss) attributable to shareholders is set out
below:
|
|
Operating profit
|
|
Profit/(loss)
attributable to shareholders
|
|
|
2023
US$m
|
|
2022
US$m
|
|
2023
US$m
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Divestment of Malaysia Grocery Retail business
|
|
|
|
|
|
|
|
|
- loss on disposal of subsidiaries (note 12(d))
|
(49.1)
|
|
-
|
|
(48.8)
|
|
-
|
|
- impairment of tangible assets
|
(3.0)
|
|
-
|
|
(3.0)
|
|
-
|
|
- loss on lease modifications
|
(3.2)
|
|
-
|
|
(3.2)
|
|
-
|
|
- gain on sale of associated properties (note 12(f))
|
3.3
|
|
-
|
|
3.3
|
|
-
|
|
- other
|
(2.4)
|
|
-
|
|
(2.4)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
(54.4)
|
|
-
|
|
(54.1)
|
|
-
|
|
Business restructuring costs
|
(12.4)
|
|
(5.8)
|
|
(11.4)
|
|
(5.4)
|
|
Impairment of intangible assets
|
(109.8)
|
|
(6.3)
|
|
(109.8)
|
|
(6.3)
|
|
Impairment of right-of-use assets
|
-
|
|
(2.2)
|
|
-
|
|
(2.1)
|
|
Gain on partial disposal of a joint venture
|
-
|
|
6.9
|
|
-
|
|
6.9
|
|
Gain on acquisition of an associate
|
-
|
|
11.2
|
|
-
|
|
11.2
|
|
Profit on sale of properties (note 12(f))
|
61.0
|
|
31.1
|
|
59.2
|
|
29.2
|
|
Change in fair value of an investment property
|
(0.6)
|
|
-
|
|
(0.6)
|
|
-
|
|
Change in fair value of equity and debt
investments
|
(15.0)
|
|
0.2
|
|
(15.0)
|
|
0.2
|
|
Impairment charge on interest in Robinsons
Retail
|
-
|
|
-
|
|
-
|
|
(170.8)
|
|
Share of impairment charge of Yonghui's
investments
|
-
|
|
-
|
|
(9.8)
|
|
(17.2)
|
|
Share of change in fair value of Maxim's investment
property
|
-
|
|
-
|
|
(0.9)
|
|
14.3
|
|
Share of change in fair value of Yonghui's
investment property
|
-
|
|
-
|
|
(0.2)
|
|
5.7
|
|
Share of change in fair value of Yonghui's equity
investments
|
-
|
|
-
|
|
(0.9)
|
|
(11.9)
|
|
Share of change in fair value of Robinsons Retail's
equity investments
|
-
|
|
-
|
|
20.8
|
|
(1.4)
|
|
Share of net gain from divestment of an investment
by Yonghui
|
-
|
|
-
|
|
-
|
|
4.1
|
|
Share of net gains from sale of debt investments by
Robinsons Retail
|
-
|
|
-
|
|
0.2
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
(131.2)
|
|
35.1
|
|
(122.5)
|
|
(143.4)
|
In March 2023, the Group exited the Grocery Retail
business in Malaysia through disposals of certain of its
subsidiaries and associated properties to a third party. The
disposal consisted of two phases. In March, shareholdings in
GCH Retail (Malaysia) Sdn. Bhd. ('GCH'), and Jutaria Gemilang Sdn.
Bhd. ('Jutaria'), which operated a supermarket and hypermarket
chain, and mini-marts respectively, were disposed. In
November, the shareholding in Jupiter Lagoon Sdn. Bhd. ('Jupiter
Lagoon'), holding the distribution centres, was disposed. A
loss on disposal of subsidiaries amounting to US$49.1 million,
including a cumulative exchange translation losses of US$48.7
million, was recorded. Certain tangible assets in the
business were impaired upon reclassification to assets held for
sale during the year. The cash received from the divestment
of the Malaysia Grocery Retail business was US$19.3 million,
representing the cash outflows related to disposals of subsidiaries
of US$23.8 million (note
12(d)) and proceeds from the disposal of associated
properties of US$43.1 million (note 12(f)).
The Group is in the process of reviewing and
restructuring its operation formats. In view of this, a
restructuring cost primarily relating to employee related costs of
US$12.5 million was charged to profit and loss. In 2022, the
restructuring costs were mainly incurred for the Group's 2018
restructuring of its South East Asia Food business.
In 2022, the Group acquired 100% interests in DFI
Digital (Hong Kong) Limited ('Digital Hong Kong') and DFI Digital
(Singapore) Pte. Limited ('Digital Singapore') from its joint
venture, Retail Technology Asia Limited ('RTA'). Following
the acquisition, Digital Hong Kong and Digital Singapore became
wholly-owned subsidiaries of the Group. Goodwill amounting to
US$13.2 million was recognised and an impairment charge of US$6.3
million on the related goodwill was recorded.
Impairment of intangible assets in 2023 related to
the impairment of goodwill associated with San Miu business in
Macau, Giant business in Singapore and the remaining goodwill in
Digital Hong Kong and Digital Singapore after the impairment
review.
Gain on partial disposal of a joint venture in 2022
represented the gain arising from the Group's disposal of 8.5% of
its interest in RTA. The Group's interest in RTA is reduced
from 50% to 41.5% upon the completion of the transaction.
Gain on acquisition of an
associate in 2022 related to the Group's acquisition of 40%
interest in Minden International Pte. Ltd. ('Minden') from a third
party. Minden supports the Group's customer loyalty programme
in Singapore.
10. Assets Held for Sale/(Liabilities
Associated with Assets Held for Sale)
|
|
|
|
2023
US$m
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets held for sale
|
|
|
6.5
|
|
|
|
65.7
|
|
|
Assets included in disposal group held for sale
|
|
|
41.3
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets held for sale
|
|
|
47.8
|
|
|
|
65.7
|
|
|
Liabilities associated with assets held for sale
|
|
|
(19.8)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28.0
|
|
|
|
65.7
|
|
Non-current assets held for sale
At 31st December 2023, the non-current assets held
for sale represented two properties in Indonesia brought forward
from 31st December 2022. The sale of these properties was
completed in early 2024.
At 31st December 2022, the non-current assets held
for sale represented 17 properties in Indonesia, and a piece of
vacant land in Malaysia. Three properties in Indonesia were
sold during the year at a profit of US$16.6 million while the
vacant land in Malaysia was disposed of via the divestment of the
Malaysia Grocery Retail business. Twelve properties in
Indonesia remained unsold. As a result of weaker property
market sentiment in Indonesia, the sale of these properties is no
longer considered highly probable within 12 months after the year
end. Therefore, these properties have been reclassified to
tangible assets or right-of-use assets respectively.
Disposal group held for sale
|
|
|
|
|
|
|
|
2023
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets
|
|
|
|
|
|
|
19.5
|
|
|
Right-of-use assets
|
|
|
|
|
|
|
17.7
|
|
|
Deferred tax assets
|
|
|
|
|
|
|
1.0
|
|
|
Debtors
|
|
|
|
|
|
|
0.2
|
|
|
Cash and bank balances (note 12(h))
|
|
|
|
|
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets held for sale
|
|
|
|
|
|
|
41.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors
|
|
|
|
|
|
|
(0.1)
|
|
|
Lease liabilities
|
|
|
|
|
|
|
(19.5)
|
|
|
Tax liabilities
|
|
|
|
|
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities associated with assets held for sale
|
|
|
|
|
|
|
(19.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.5
|
|
In December 2023, the Group entered into a sale and
purchase agreement with a third party to dispose of its subsidiary,
DFI Properties Taiwan Limited ('DFI Properties'), a property
holding company in Taiwan. Upon completion of the
transaction, the Group will leaseback a portion of the tangible and
right-of-use assets from DFI Properties.
At 31st December 2023, the disposal group held for
sale represented the portion of the tangible and right-of-use
assets that will not be leased back, and other assets and
liabilities, with a total carrying value of US$21.5 million
attributable to DFI Properties. The consideration of the
disposal exceeds the carrying amounts of the relevant assets and
liabilities and accordingly, no impairment loss has been
recognised. The transactions are expected to complete in the
first half of 2024.
11. Dividends
|
|
|
2023
US$m
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Final dividend in respect of 2022 of US¢2.00
(2021:
US¢6.50) per share
|
|
27.1
|
|
87.9
|
|
Interim dividend in respect of 2023 of US¢3.00
(2022:
US¢1.00) per share
|
|
40.6
|
|
13.5
|
|
|
|
|
|
|
|
|
|
67.7
|
|
101.4
|
|
Dividends on shares held by a subsidiary of the
Group under a share-based long-term incentive plan
|
|
(0.4)
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
67.3
|
|
100.9
|
A final dividend in respect of 2023 of US¢5.00
(2022: US¢2.00) per share
amounting to a total of US$67.7 million (2022: US$27.1 million) is proposed by
the Board. The dividend proposed will not be accounted for
until it has been approved at the 2024 Annual General
Meeting. This amount will be accounted for as an
appropriation of revenue reserves in the year ending 31st December
2024.
12. Notes to Consolidated Cash Flow
Statement
(a) Purchase of subsidiaries
|
|
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
0.1
|
|
Current assets
|
|
|
8.1
|
|
Current liabilities
|
|
|
(7.0)
|
|
|
|
|
|
|
Fair value of identifiable net assets acquired
|
|
|
1.2
|
|
Goodwill
|
|
|
13.2
|
|
|
|
|
|
|
Consideration paid
|
|
|
14.4
|
|
Cash and cash equivalents at the date of
acquisition
|
|
|
(5.6)
|
|
|
|
|
|
|
Net cash outflows
|
|
|
8.8
|
In 2022, the Group acquired 100%
interests in Digital Hong Kong and Digital Singapore,
developing and driving digital innovation businesses, from its
joint venture, RTA, for a total net cash consideration of US$8.8
million.
The fair values of the identifiable assets and
liabilities were provisional at the acquisition date and finalised
during the year with no change to the provisional values.
The goodwill arising from the acquisition amounting
to US$13.2 million was attributable to its ownership interest in
the intellectual property.
None of the goodwill is expected to be deductible
for tax purposes.
(b) Purchase of associates and joint
ventures in 2023 related to the Group's capital injections of
US$8.3 million in its digital joint venture, US$5.1 million in its
associate in Singapore, US$2.2 million in its health and beauty
joint venture in Thailand and US$2.8 million in the business in
Vietnam.
Purchase in 2022 related to the capital injection of
US$8.3 million in the Group's digital joint venture.
(c) Purchase of other investments
in 2022 related to the Group's subscription of a five-year
convertible bond of Pickupp Limited, a delivery platform founded in
Hong Kong, for a principal of US$10.0 million.
(d) Sale of subsidiaries
|
|
|
|
|
|
|
|
2023
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
102.2
|
|
|
Current assets
|
|
|
|
|
|
|
174.2
|
|
|
Current liabilities
|
|
|
|
|
|
|
(177.9)
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
(120.8)
|
|
|
Non-controlling interests
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Net liabilities disposed of
|
|
|
|
|
|
|
(12.1)
|
|
|
Cumulative exchange translation losses
|
|
|
|
|
|
|
48.7
|
|
|
Loss on disposals
|
|
|
|
|
|
|
(49.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consideration
|
|
|
|
|
|
|
(12.5)
|
|
|
Non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- consideration settled
|
|
|
|
|
|
|
41.8
|
|
|
- consideration receivable
|
|
|
|
|
|
|
(1.1)
|
|
|
- transaction costs settled
|
|
|
|
|
|
|
2.2
|
|
|
- transaction costs payable
|
|
|
|
|
|
|
4.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47.3
|
|
|
Cash and cash equivalents of the subsidiaries
disposed of
|
|
(58.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash outflows
|
|
|
|
|
|
|
(23.8)
|
|
Total consideration of the transaction is further
analysed as follows:
|
|
|
|
|
|
|
|
US$m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sale proceeds
|
|
|
|
|
|
|
59.6
|
|
|
Consideration paid and settled
|
|
|
|
|
|
|
(49.2)
|
|
|
Consideration receivable
|
|
|
|
|
|
|
1.1
|
|
|
Transaction costs paid and settled
|
|
|
|
|
|
|
(19.6)
|
|
|
Transaction costs payable
|
|
|
|
|
|
|
(4.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12.5)
|
|
In February 2023, the Group entered into agreements
to dispose of interests in subsidiaries operating the Malaysia
Grocery Retail business, and the associated properties, to a third
party. The disposals of the Group's interests in the related
subsidiaries, GCH, Jutaria and Jupiter Lagoon were completed during
the year. Included within the consideration,
an amount of US$41.8 million was due to be paid to the third
party after completion to cover certain liabilities incurred by
GCH. The amount was subsequently settled via an offset
against a loan receivable from GCH.
The revenue and loss after tax in respect of
subsidiaries disposed of during the year amounted to US$83.3
million and US$8.8 million, respectively.
The cash received from the
divestment of the Malaysia Grocery Retail business was US$19.3
million, representing the cash outflows related to disposals of
subsidiaries of US$23.8 million and proceeds from the disposal of
associated properties of US$43.1 million (note 12(f)).
(e) Sale of associates and joint
ventures in 2022 related to the proceeds from the Group's disposal
of 8.5% of its interest in RTA amounted to US$6.9 million.
(f) Sale of properties in 2023
related to disposal of properties in Singapore, Indonesia and
Malaysia amounted to US$142.0 million. A property in
Singapore and three properties in Indonesia were sold with proceeds
of US$98.9 million, and a gain on disposal amounted to US$61.0
million (note 9) was
recognised. Four properties in Malaysia were sold through the
divestment of Malaysia Grocery Retail business with proceeds of
US$43.1 million (note
12(d)), and a gain of US$3.3 million (note 9) was recognised.
Sale of properties in 2022 related to disposal of
three properties in Indonesia and one property in Hong Kong,
Singapore and Malaysia, respectively, for a total cash
consideration of US$63.6 million, and a gain on disposal of
properties amounted to US$31.1 million (note 9) was
recognised.
(g) Purchase of
shares for a share-based long-term incentive plan in 2023 related
to the purchase of 3,976,300 ordinary shares from the stock market
by a subsidiary of the Group for a total consideration of US$9.7
million.
Purchase of shares in 2022 related
to the purchase of 7,912,100 ordinary shares from the stock market
by a subsidiary of the Group for a total consideration of US$20.0
million.
(h) Analysis of
balances of cash and cash equivalents
|
|
2023
US$m
|
|
2022
US$m
|
|
|
|
|
|
|
|
|
|
|
|
Cash and bank balances
|
303.4
|
|
230.7
|
|
Bank overdrafts
|
(8.1)
|
|
(17.0)
|
|
Cash and bank balances included in assets held for
sale (note 10)
|
2.9
|
|
-
|
|
|
|
|
|
|
Cash and cash
equivalents
|
298.2
|
|
213.7
|
13. Capital Commitments and Contingent
Liabilities
Total capital commitments at 31st December 2023
amounted to US$72.3 million (2022:
US$131.1 million).
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 financial
statements.
14. Related Party Transactions
The parent company of the Group is Jardine Strategic
Limited and the ultimate parent company is Jardine Matheson
Holdings Limited ('JMH'). Both companies are incorporated in
Bermuda.
In the normal course of business, the Group
undertakes a variety of transactions with JMH and certain of its
subsidiaries, associates and joint ventures. The more
significant of such transactions are described below.
The Group pays management fees to Jardine Matheson
Limited ('JML'), a wholly-owned subsidiary of JMH, under the terms
of a Management Services Agreement, for certain management
consultancy services provided by JML. The management fees
paid by the Group to JML in 2023 were US$0.2 million (2022: US$0.3 million). The
Group also paid directors' fees of US$0.3 million (2022: US$0.3 million) in 2023 to
JML.
The Group rents properties from
Hongkong Land ('HKL') and Mandarin Oriental
Hotel Group ('MOHG'), subsidiaries of JMH. The lease
payments paid by the Group to HKL and MOHG in 2023 were US$3.4
million (2022:
US$2.8
million) and US$0.6 million
(2022: US$0.7 million),
respectively. The Group's 50%-owned
associate, Maxim's, also paid lease payments of US$10.6 million
(2022: US$8.3 million) to
HKL in 2023.
The Group obtains repairs and maintenance services
from Jardine Engineering Corporation ('JEC'), a subsidiary of
JMH. The total fees paid by the Group to JEC in 2023 amounted
to US$2.4 million (2022: US$3.5
million).
Maxim's supplies ready-to-eat products at arm's
length to certain subsidiaries of the Group. In 2023, these
amounted to US$47.3 million (2022: US$41.9 million).
The Group's digital joint venture, RTA group,
implements point-of-sale system and provides consultancy services
to the Group. The total fees paid by the Group to RTA group
in 2023 amounted to US$16.9 million (2022: US$13.1 million).
The Group's associate, Minden, supports the Group's
customer loyalty programme in Singapore. The total fees paid
by the Group to Minden in 2023 amounted to US$4.7 million
(2022: $0.6 million).
There were no other related party transactions that
might be considered to have a material effect on the financial
position or performance of the Group that were entered into or
changed during the year.
Amounts of outstanding balances with associates and
joint ventures are included in debtors and creditors, as
appropriate.
DFI Retail Group
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 Guidance and Transparency
Rules issued by the Financial Conduct Authority in the
United Kingdom and are in addition to the matters referred to in
the Chairman's Statement, Group Chief Executive's Review and other
parts of the Company's 2023 Annual Report (the 'Report').
Economic
Risk
Most of the Group's businesses are exposed to the
risk of negative developments in global and regional economies and
financial markets, either directly or through the impact such
developments might have on the Group's joint venture partners,
associates, franchisors, bankers, suppliers or customers.
These developments could include recession, inflation, deflation,
currency fluctuations, restrictions in the availability of credit,
business failures, or increases in financing costs, oil prices, the
cost of raw materials or finished products. Such developments
might increase operating costs, reduce revenues, lower asset values
or result in some or all of the Group's businesses being unable to
meet their strategic objectives.
Mitigation Measures
· Monitor the volatile macroeconomic environment and consider
economic factors in strategic and financial planning
processes.
· Make agile adjustments to existing business plans and explore
new business streams and new markets.
· Review pricing strategies and keep conservative
assumptions.
· Insurance programme covering property damage and business
interruption.
Commercial
Risk
Risks are an integral part of
normal commercial activities and where practicable steps are
taken to mitigate them. Risks can be more pronounced
when businesses are operating in volatile markets. While the
Group's regional diversification does help to mitigate some risks,
a significant portion of the Group revenues and profits continue to
be derived from our operations in Hong Kong.
A number of the Group's businesses make significant
investment decisions regarding developments or projects, which are
subject to market risks. This is especially the case where
projects are longer-term in nature and take more time to deliver
returns.
The Group's businesses operate in areas that are
highly competitive and failure to compete effectively, whether in
terms of price, product specification, technology, property site or
levels of service, failure to manage change in a timely manner or
to adapt to changing consumer behaviours, including new shopping
channels and formats, can have an adverse effect on earnings.
Significant competitive pressure may also lead to reduced
margins.
While social media presents significant
opportunities for the Group's businesses to connect with customers
and the public, it also creates a whole new set of potential risks
for companies to monitor, including damage to brand equity or
reputation, affecting the Group's profitability.
Mitigation Measures
· Utilise market intelligence and deploy digital strategies for
business-to-consumer businesses.
· Establish customer relationship management programme and
digital commerce capabilities.
· Engage in longer-term contracts and proactively approach
suppliers for contract renewals.
· Re-engineer existing business processes.
· Continue accelerating the Group's own brand
strategy.
Financial and
Treasury Risk
The Group's activities expose it
to a variety of financial risks, including market risk, credit risk
and liquidity risk.
The market risk the Group faces
includes i) foreign exchange risk from future commercial
transactions, net investments in foreign operations and net
monetary assets and liabilities that are denominated in a currency
that is not the entity's functional currency; ii) interest rate
risk through the impact of rate changes on interest bearing
liabilities and assets; and iii) securities price risk as a result
of its equity investments and limited partnership investment funds
which are measured at fair value through profit and loss, and debt
investments which are measured at fair value through other
comprehensive income.
The Group's credit risk is
primarily attributable to deposits with banks, contractual cash
flows of debt investments carried at amortised cost and those
measured at fair value through other comprehensive income, credit
exposures to customers and derivative financial instruments with a
positive fair value.
The Group may face liquidity risk
if its credit rating deteriorates or if it is unable to meet its
financing commitments.
Mitigation Measures
· Limiting foreign exchange and interest rate risks to provide a
degree of certainty about costs.
· Management of the investment of the Group's cash resources so
as to minimise risk, while seeking to enhance yield.
· Adopting appropriate credit guidelines to manage counterparty
risk.
· When economically sensible to do so, taking borrowings in
local currency to hedge foreign exchange exposures on
investments.
· A portion of borrowings is denominated in fixed rates.
Adequate headroom in committed facilities is maintained to
facilitate the Group's capacity to pursue new investment
opportunities and to provide some protection against market
uncertainties.
· The Group's funding arrangements are designed to keep an
appropriate balance between equity and debt from banks and capital
markets, both short- and long-term in tenor, to give flexibility to
develop the business. The Company also maintains sufficient
cash and marketable securities, and ensures the availability of
funding from an adequate amount of committed credit facilities and
the ability to close out market positions.
· The Group's treasury operations are managed as cost centres
and are not permitted to undertake speculative transactions
unrelated to underlying financial exposures.
The detailed steps taken by the
Group to manage its exposure to financial risk will be set out in
the Financial Review and in a note to the financial statements in
the Report.
Concessions,
Franchises and Key Contracts Risk
A number of the Group's businesses
and projects rely on concessions, franchises, management, leasing
of stores or other key contracts. Accordingly, cancellation,
expiry or termination, or the renegotiation of any such
concessions, franchises, management, leasing of stores or other key
contracts could adversely affect the financial condition and
results of operations of certain subsidiaries, associates, and
joint ventures of the Group.
Mitigation measures
· Sustaining and strengthening relationships with
franchisors.
· Monitor sales performance and compliance with franchise
terms.
· Regular communication with franchisees and concessionaires,
including performance management.
Regulatory and
Political Risk
The Group's businesses are subject to several
regulatory regimes in the territories they operate. Changes
in such regimes, in relation to matters such as foreign ownership
of assets and businesses, exchange controls, licensing, imports,
planning controls, emission regulations, tax rules and employment
legislation, could have the potential to impact the operations and
profitability of the Group's businesses.
Changes in the political environment, including
political or social unrest, in the territories where the Group
operates, could adversely affect the Group's businesses.
Mitigation Measures
· Stay connected and informed of relevant new and draft
regulations.
· Engage external consultants and legal experts where
necessary.
· Assessing impact on the business and taking appropriate
measures.
· Raise awareness with regular updates on new regulations that
may have been implemented in other markets.
Cybersecurity and
Technology Risk
The Group faces increasing numbers
of cyberattacks from groups targeting individuals and
businesses. As a result, the privacy and security of customer
and corporate information are at risk of being compromised through
a breach of our or our suppliers' IT systems or the unauthorised or
inadvertent release of information, resulting in brand damage,
impaired competitiveness or regulatory action. Cyberattacks
may also adversely affect our ability to manage our business
operations or operate information technology and business systems,
resulting in business interruption, lost revenues, repair or other
costs.
The Group is heavily reliant on its
IT infrastructure and systems for the daily operation of its
business. Any major disruption to the Group's IT systems
could significantly impact operations. The ability to
anticipate and adapt to technology advancements or threats is an
additional risk that may also impact the business.
Mitigation
Measures
· Continued investment in upgrading of technology and IT
infrastructure.
· Defined cybersecurity programme and centralised function to
provide oversight, manage cybersecurity matters, and strengthen
cyber defences and security measures.
· Perform regular vulnerability assessment and/or penetration
testing by third parties to identify weaknesses.
· Arrange regular security awareness training and phishing
testing to raise users' cybersecurity awareness.
· Maintain disaster recovery plans and backup for data
restoration.
· Regular external and internal audit reviews.
Talent
Risk
The competitiveness of an
organisation depends on the quality and the availability of the
people that it attracts and retains. A shortage of store
labour and unavailability of needed human resources may impact the
ability of the Group's businesses to operate at full capacity,
implement initiatives and pursue opportunities.
Mitigation Measures
· Proactive manpower planning and proactive hiring are in
place.
· Enhanced employer branding, training for team members and
talent development plans.
· Promote Inclusion, Equity and Diversity across the
Group.
· Total compensation in line with market
benchmarking.
Environmental and
Climate Related Risks
Environmental disasters such as earthquakes, floods
and typhoons can damage the Group's assets and disrupt
operations. Global warming-induced climate change has
increased the frequency and intensity of storms, leading to higher
insurance premiums or reduced coverage for such natural
disasters.
With governments also taking a more proactive
approach towards carbon taxes, renewable energies and electric
vehicles, additional investments and efforts to address physical
and transition risks of climate change are anticipated from
businesses.
With interest in sustainability surging in recent
years from investors, governments and the general public,
expectations by regulators and other stakeholders for accurate
corporate sustainability reporting and commitments towards carbon
neutrality to address climate change are also
growing. This brings increasing challenges to the Group and
its businesses to meet key stakeholders' expectations.
There is potential for negative publicity and
operational disruption arising from conflict between activists and
the Group's businesses that are perceived to be engaged in trade
and activities that are environmentally unfriendly.
Mitigation Measures
· Sustainability Leadership Council established to mobilise and
coordinate sustainability efforts across the Group.
· A sustainability strategy framework, including a climate
action pillar, drives the Group's sustainability agenda.
· A Climate Action Working Group, with representatives from all
business units, drives Group-wide initiatives which strengthen
collaboration and share knowledge.
· Each business is building a net zero carbon pathway and
climate change plan to build climate resilience.
· Assess emerging Environmental, Social and Governance ('ESG')
reporting standards and requirements, to align Group disclosures to
best market practice.
· Conduct climate risk assessments and adaptation action plans
based on recommendations of Task Force on Climate-Related Financial
Disclosures, including implementing measures to address physical
risks posed by climate change and identifying opportunities in
global transition to a low carbon economy.
· Formulate the appropriate risk response strategy (particularly
on the Group's key assets and supply chain), and integrate Physical
and Transitional Climate Risk into the Group's existing risk
management approach.
· Foster ongoing dialogue with local communities, environmental
groups, and regulators to gain insights and build partnerships for
sustainability. Proactive engagement aids in preventing and
resolving conflicts.
· Continue the practice of rolling out regular sustainability
training for employees, aiming to enhance environmental awareness
and instill a culture of responsibility. Notably, this year,
we have successfully integrated ESG targets into each staff's
annual performance review, reinforcing our commitment to
sustainability across the Group.
Third-party Service
Provider and Supply Chain Management Risk
Supply chain disruption caused by
key suppliers or service providers, or failure to deliver by
contractors/subcontractors could cause
significant operational disruption, lack of inventory supply,
financial loss and reputational damage to the
businesses.
The Group's operations may be
materially affected if third parties on which we depend are
compromised by cyber-attacks. With increased reliance on
third-party ecosystems, the Group has greater exposure to
third-party risk if there is insufficient vetting, oversight or
visibility over third parties and their subcontractors,
particularly on information security, resilience, regulatory
compliance, and their ongoing capability.
Mitigation Measures
· Ensuring protective terms and conditions in third-party
service agreements, including vendors being contractually required
to bear higher liability for failures to deliver or if they are
responsible for a cyber incident at a Group's business.
· Having robust evaluation and selection procedures for vendors
and third-party service providers, including an information
security assessment where appropriate.
· Engaging suppliers only if they agree to comply with a
supplier code of conduct where businesses require.
· Sourcing back-up suppliers, warehouses or other alternative
plans.
· Maintaining strong relationships with suppliers that are
designated by principals.
· Maintaining supplier insurance to cover logistics
interruption.
· Ensuring early negotiation of new contracts for key service
providers.
· Diversifying the product range to reduce the impact of
disruptions to single products.
· Including third-party disruption scenarios as part of business
continuity planning.
Health, Safety and
Product Quality Risk
Several of the Group's businesses
engage in production or other physical activities that may lead to
serious injury or fatal incidents if work conditions are unsafe or
workers do not take due care to observe safety
procedures.
The safety and quality of food
products and all items delivered by the Group's businesses are
fundamental to their reputation with customers. Any actual or
perceived deficiency in product safety or quality may damage
consumer confidence and the Group's reputation, leading to
financial loss.
Mitigation Measures
Health & Safety
('H&S')
· Risk management programme used to identify and manage the risk
of the Group's business operations.
· H&S inspection and incident management programme
implemented to identify unsafe acts and unsafe conditions in our
workplaces so that we can take corrective action.
· H&S operational compliance is monitored via internal cross
check programme.
· Management of fire safety, statutory equipment and first aid
certificates.
· First aid policy is in place.
· Established a contractor H&S management
programme.
· Contractors must have a contractual agreement in place to
ensure they comply with high expected levels of safety
standards.
· Incorporating site safety plans in tenders and
contracts.
· Routine safety training for all team members and
sub-contractors.
· Disseminating safety materials such as signage and pictorial
representations of safe work procedures.
Product Safety /
Operational Food Safety
· All Own Brand products have specifications, product quality
and safety standards in place and are monitored via routine product
surveillance assessments by a third party.
· Established a strong supplier qualification and surveillance
programme.
· Suppliers must follow all DFI policies and adhere to all local
regulations.
· Operational compliance KPIs for food safety and health and
safety.
· Comprehensive quality control measures in place in the Group's
fresh production centres, distribution centres and retail
stores.
· Effectiveness of food safety standards validated by
third-party audits in retail stores, processing centres and
distribution centres.
Other
General
· Purchasing sufficient insurance coverage including employee
compensation.
· Obtaining adequate product liability insurance.
DFI Retail Group
Holdings Limited
Responsibility
Statements
The Directors of the Company confirm to the best of
their knowledge that:
a. the
consolidated financial statements prepared in accordance with
International Financial Reporting Standards, including
International Accounting Standards and Interpretations as issued by
the International Accounting Standards Board, give a true
and fair view of the assets, liabilities, financial position and
profit or loss of the Group; and
b. the
Chairman's Statement, Group Chief Executive's Review, Business
Review, Financial Review and the
description of Principal Risks and Uncertainties facing the Group
as set out in the Company's 2023 Annual Report, which constitute the management report required by
the Disclosure Guidance and Transparency Rule 4.1.8, include a fair review of all information required to be
disclosed under Rules 4.1.8 to
4.1.11 of the Disclosure Guidance and Transparency Rules
issued by the Financial Conduct Authority in the
United Kingdom.
For and on behalf of the Board
Scott Price
Clem Constantine
Directors
DFI Retail Group
Holdings Limited
Dividend
Information for Shareholders
The final dividend of US¢5.00 per share will be
payable on 15th May 2024, subject to approval at the Annual General
Meeting to be held on 8th May 2024, to shareholders on the register
of members at the close of business on 22nd March 2024. The
shares will be quoted ex-dividend on 21st March 2024, and the share
registers will be closed from 25th to 29th March 2024,
inclusive.
Shareholders will receive cash dividends in United
States Dollars, except when elections are made for alternate
currencies in the following circumstances.
Shareholders on the
Jersey branch register
Shareholders registered on the Jersey branch
register can elect for their dividends to be paid in
Sterling. These shareholders may make new currency elections
for the 2023 final dividend by notifying the United Kingdom
transfer agent in writing by 26th April 2024. The Sterling
equivalent of dividends declared in United States Dollars will be
calculated by reference to a rate prevailing on 2nd May 2024.
Shareholders holding their shares through CREST in
the United Kingdom will receive cash dividends in Sterling only, as
calculated above.
Shareholders on the Singapore branch register who hold their
shares through The Central Depository (Pte) Limited
('CDP')
Shareholders who are on CDP's
Direct Crediting Service ('DCS')
Those shareholders on CDP's DCS will receive their
cash dividends in Singapore Dollars unless they opt out of CDP
Currency Conversion Service, through CDP, to receive United States
Dollars.
Shareholders who are not on CDP's DCS
Those shareholders not on CDP's DCS will receive
their cash dividends in United States Dollars unless they elect,
through CDP, to receive Singapore Dollars.
Shareholders on the Singapore branch register who
wish to deposit their shares into the CDP system by the dividend
record date, being 22nd March 2024, must submit the relevant
documents to Boardroom Corporate & Advisory Services Pte. Ltd.,
the Singapore branch registrar, by no later than 5.00 p.m. (local
time) on 21st March 2024.
DFI Retail Group
Holdings Limited
About DFI Retail
Group
DFI Retail Group (the 'Group') is a
leading pan-Asian retailer. At 31st December 2023, the
Group and its associates and joint ventures
operated some 11,000 outlets with more than 5,000 stores
operated by subsidiaries. The Group together with associates
and joint ventures employed some 213,000 people with some 48,000
people employed by subsidiaries. The Group had total annual
revenue in 2023 exceeding US$26 billion and reported revenue of
US$9 billion.
The Group provides quality and value to Asian
consumers by offering leading brands, a compelling retail
experience and great service; all delivered through a strong store
network supported by efficient supply chains.
The Group (including associates and joint ventures)
operates under a number of well-known brands across six divisions.
The principal brands are:
Food
· Wellcome in Hong Kong
S.A.R.; Yonghui in Chinese mainland; Cold Storage and Giant in
Singapore; Hero in Indonesia; and Robinsons in the Philippines.
Convenience
·
7-Eleven in Hong Kong and Macau S.A.R., Singapore and Southern
China.
Health and Beauty
· Mannings in Chinese
mainland, Hong Kong and Macau S.A.R.; Guardian in Brunei, Cambodia,
Indonesia, Malaysia, Singapore and Vietnam.
Home Furnishings
· IKEA in Hong Kong and
Macau S.A.R., Indonesia and Taiwan.
Restaurants
·
Hong Kong Maxim's group in Chinese mainland, Hong
Kong and Macau S.A.R., Cambodia, Malaysia, Singapore, Thailand,
Vietnam and Laos.
Other Retailing
· Robinsons in the
Philippines operating department stores, specialty and DIY
stores.
The Group's parent company, DFI
Retail Group Holdings Limited, is incorporated in Bermuda and has a
primary listing in the standard segment of the London Stock
Exchange, with secondary listings in Bermuda and Singapore.
The Group's businesses are managed from Hong Kong by DFI Retail
Group Management Services Limited through its regional
offices. DFI Retail Group is a member of the Jardine Matheson
Group.
- end -
For further information, please contact:
DFI Retail Group Management Services Limited
|
|
Christine Chung
|
(852) 2299 1056
|
|
|
Brunswick Group Limited
|
|
William Brocklehurst
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(852) 5685 9881
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Full text of the Preliminary Announcement of Results
and the Preliminary Financial Statements for the year ended 31st
December 2023 can be accessed via the DFI Retail Group corporate
website at www.dfiretailgroup.com.