Hong Kong retail group Dairy Farm has reported a 5 per cent rise in sales, including associates and joint ventures, to US$6.3bn in the first six months of 2014.
But net profit fell 2 per cent to US$224m in the months ending 30 June.
In its financial statement released on 31 July, the group said its food businesses were focused on maintaining sales growth in more competitive market conditions and an environment of escalating costs, which led to a decline in profits.
Dairy Farm's Hong Kong banners had a satisfactory first half, and in Malaysia both sales and profits were above the prior year, it said.
But in Singapore, a challenging trading environment and construction activity impacted several key stores causing profit decline.
Giant and Hero stores in Indonesia achieved sales growth from new store development, but profits were depressed by higher costs and the exchange rate.
'Nevertheless, Dairy Farm is well placed to drive long-term growth with strong market positions in its major businesses, a sharper focus on customer needs and strengthening its brands, improved supply chain and systems capabilities, and its strong financial position.'
In the statement Dairy Farm also revealed that it had sold its 49 per cent interest in Foodworld and 50 per cent interest in Health and Glow in India to its joint venture partner in July, while in the same month the group agreed to increase its shareholding in Rustan Supercenters in the Philippines from 50 per cent to 66 per cent in a deal expected to complete in August 2014.
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