(Source: Inside Retail Philippines | 3 March 2017)
Sales of imported and exclusive brands helped boost sales of Dairy Farm International’s Rustan’s supermarket operation last year.
While the Hong Kong-headquartered company’s two-year-old Philippine acquisition, Rose Pharmacy, also played its part in a solid group performance across Asia.
Dairy Farm International CEO Graham Allan said the Philippines recorded a strong year with all food banners reporting like-for-like sales growth and improved profitability.
“A more appealing fresh assortment coupled with tactical pricing and successful marketing activities underpinned an encouraging increase in footfall. Rustan’s benefited from increased sales of its imported and exclusive brands, while measures to improve cost efficiency were also implemented,” he said.
In its second year in the group, Rose Pharmacy delivered performance improvement through sales growth, gross margin enhancement, better cost efficiency and the closure of a number of underperforming stores, said Allan.
Globally, the Hong Kong-headquartered multi-format retailer celebrated its 130th anniversary with a strong set of results, with food, home furnishings and restaurants delivering higher profits.
Total sales, including those of associates and joint ventures, rose 14 per cent in US dollar terms and 17 per cent on a constant-currency basis to US$20.4 billion. Sales of wholly-owned subsidiaries rose 1 per cent to $11.2 billion.
Total food division sales, which include Wellcome, Cold Storage, Jasons and Giant, were flat in US dollar terms, although up 1 per cent on a constant currency basis.
Operating profit from the food division rose 13 per cent to $267 million, with the largest gains coming from Singapore and Indonesia.