Dairy Farm International Holdings, flush from the sale of its grocery operations in Australia and New Zealand, has announced it will resume paying dividends to shareholders for the first time in nearly three years.
Dairy Farm reported a net profit of US$265 million yesterday, for the six months to June 30, reversing a first-half loss of US$15 million last year.
However, chairman Simon Keswick warned that business conditions in Asia remained tough despite the upturn in profits.
'The economic conditions in Asia remain unsettled and our important Hong Kong market continues to be challenging,' Mr Keswick said.
He added that 'we enter the second half of the year in good operational condition and with sound finances'.
Underlying net profit, stripping out the gains made by the sale of its Franklins and Woolworths operations in Australia and New Zealand, was US$30 million - still a five-fold increase from last year's US$6 million.