Dairy Farm International Holdings Ltd’s Business: 3 Things Investors May Not Know, But Ought To

Dairy Farm International Holdings Ltd (SGX: D01) is a bricks-and-mortar retailer that has interests in many types of retail stores that are located across Asia.

For instance, the company is involved with supermarkets, hypermarkets, convenience stores, pharmacies, furniture stores, and even restaurants. In Singapore, retail stores under Dairy Farm’s banner include GuardianCold StorageGiant, and 7-Eleven.

Here are three pieces of useful information about the company that many investors may not be aware of:

1. The company is really old

The US-based soft-drinks maker The Coca-Cola Co is one of billionaire investor Warren Buffett’s largest investments. In Buffett’s view, Coca-Cola has a really strong brand. Part of Coca-Cola’s brand equity could be due to its age – it has been in business since 1886, according to S&P Global Market Intelligence.

 Now here’s the thing: 1886 was also the same year that Dairy Farm was incorporated. This means that Dairy Farm’s 130 years old today, nearly twice Singapore’s age.

2. Dairy Farm has nothing to do with dairy and farming

Dairy Farm’s name may mislead some people into thinking that its business revolves around dairy products and farming.

That was true in the past, but is clearly no longer the case. In 1983, the company started selling its farming business.

Today, Dairy Farm is very much a bricks-and-mortar retailer, as mentioned earlier.

3. It has a huge employee headcount

In its 2015 annual report, Dairy Farm reported that it had over 180,000 employees around the world. For perspective, Singapore Telecommunications Limited (SGX: Z74), the largest company by market capitalisation in the Straits Times Index (SGX: ^STI), had only 25,000 employees globally as of 31 March 2016.

It is likely that Dairy Farm plays a significant economic and social role in the markets that it operates in.

What we’ve seen above are a few pieces of useful information about Dairy Farm’s business that can possibly help investors assess the long-term sustainability of the company’s profit.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Dairy Farm International Holdings. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.