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QuestionsCategory: Business QuadrantHad anyone look at dairy farm annual report 2016 before?
Lim Marko asked 5 years ago

Hi guys, 
This question a bit long and thanks for spending the effort reading it and answering it!!! thank you guys!!!
After I had finishing read up chapter 1 – 5 of the investment Q I had decided to applied what I learn and perform a analysis on Dairy farm using annual report 2016
Currently I had drawn the business model flow chart of the company and I having some problem of getting one of the data for the segmental break down of the company. which is the restaurant. 
At page 69 of the annual report it shows its segmental break down by business looking at the Subsidiaries side of the report, I am able to get all all the figure for segmental break down only except the Restaurant as shown below 
Supermarket / hyper market                           8,167.9
convenience stores                                         6,217.3
Health and beauty                                           2,435.9
Home furnishings                                               596.9
Restaurants                                                         ——
                              Figures are report in USD millions 
So i am very puzzle by this annual report, first why the restaurants revenue it was not complied to the revenue of the income statement?
Second what is the difference including associates and joint ventures sales and subsidiaries sales ?
Hope to hear from anyone soon and thanks for the help 
Happy investing 
Marko Lim 

1 Answers
Victor Chng answered 5 years ago

Hi Marko,
Associates are companies that Dairy Farm owned less than 50% in it and most of the time they do not have control. As for Joint venture they can owned different type of percentage but they share equal control in it despite percentage difference. From what i see in the annual report, Dairy Farm (DF) should owned less than 50% stake in the restaurant business, Company are allow to record it in revenue only when it owned more than 50%. Hence, since DF owned less than 50% it is recorded only in the profit.

Lim Marko replied 5 years ago

Hi Victor

Thanks for all the effort that you had put in teaching me!!!

Marko Lim

Victor Chng replied 5 years ago

You are welcome Marko :) Keep up the good work