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04 Business Review
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Health and Beauty like-for-like sales momentum improved in the second half, with strong growth in the fourth quarter. Profitability increased over 50% in the second half relative to the same period last year.
Group Sales*
Group Profit †
*Including share of associates and joint ventures.
†Based on operating profit before effect of adopting IFRS 16 and share of results of associates and joint ventures, excluding selling, general and administrative expenses and non-trading items.
DFI Retail Group’s Health and Beauty business operates across Asia through well-established and trusted brands such as Mannings and GNC in North Asia, and Guardian in Southeast Asia, serving our customers with a wide range of health, beauty, personal care and baby care products.
The reduction in reported sales revenue for the Health and Beauty division was driven predominantly by the successful integration of Rose Pharmacy into Robinsons Retail in the second half of 2020. Overall reported sales for the division were US$1.8 billion in 2021, a reduction of 9% relative to the prior year. However, sales reduced only 2% excluding the impact of the Rose Pharmacy divestment. Like-for-like sales momentum improved in the second half, as external conditions began to improve. However, relative to historical levels, divisional performance was affected by ongoing disruptions caused by the COVID-19 pandemic to movement and tourism.
Overall like-for-like sales for Mannings in North Asia were ahead of prior year despite an ongoing lack of custom from tourists. Like-for-like sales performance improved significantly in the second half, with strong growth in the fourth quarter. Both Mannings Macau and China also grew strongly in the first half. In Macau in particularly, the easing of border restrictions in the first half significantly benefitted performance. However, the rise in COVID cases impacted movement in the second half and impeded sales momentum. In Hong Kong, Mannings has focused on driving local customer sales with price investment programmes driving over 80% uplift in volume of key SKUs and significant market share gains.
Over 1,000 re-developed or new Health and Beauty Own Brand products are planned for a launch in 2022
‡ Including 100% of associates and joint ventures.
Guardian like-for-like sales were impacted by the ongoing pandemic, government-imposed restrictions on movement and low levels of mall visitations. Like-for-like sales momentum, however, did improve in the second half as movement restrictions became less severe.
Operating profit was US$56 million in 2021, a reduction of US$9 million relative to the prior year. Encouragingly, profitability increased over 50% in the second half relative to same period last year, driven by improved sales performance and ongoing disciplined cost control, with particularly strong profit growth in Hong Kong. Whilst 2021 has remained a challenging year for the Health and Beauty division, the improved performance in the second half gives us reason to be optimistic when conditions normalise.
Guardian voted No. 1 Favourite Store in Malaysia
