DFI Retail Group posts 38.9% rise in H1 underlying profit, pays special dividend of US$0.443 a share

[SINGAPORE] Supermarket and retail store operator DFI Retail Group’s underlying profit rose 38.9 per cent to US$105 million for the first half ended Jun 30, from US$75.6 million in the same period the year before.

This comes even as half-year revenue inched down to US$4.39 billion from US$4.4 billion in the previous corresponding period.

DFI on Tuesday (Jul 22) attributed the profit growth to lower financing costs and an improved showing in its associates, as well as its healthy and beauty, and food segments.

After accounting for the divestment of Chinese supermarket operator Yonghui Superstores, which was completed in February, underlying profit of the group’s associates was US$30 million, up from US$3 million in the year-ago period.

The increase was also due to higher contributions from both Maxim’s and Robinsons Retail. The group’s share of Maxim’s and Robinson Retail’s underlying profits grew to US$14 million and US$18 million, respectively.

Sales in DFI’s health and beauty segment grew 4 per cent on the year to US$1.3 billion and profit grew 8 per cent to US$109 million on a like-for-like basis.

The bottom line of the group’s food division grew 14 per cent on the year to US$24 million on a like-for-like basis. This was despite a marginal drop in its revenue to US$1.5 billion, excluding the impact of the divestment of the Hero Supermarket business in Indonesia last year.

Underlying earnings per share stood at US$0.0779 for the period, up from US$0.0562 a year ago.

“Our ongoing portfolio evolution enables us to prioritise capital on high-margin businesses and growth initiatives, while providing strategic flexibility for inorganic opportunities,” said the group.

In the recent H1, the group completed the divestment of its minority stakes in Yonghui Superstores and Robinsons Retail, generating total gross proceeds of about US$900 million.

The group is also selling its Singapore food business to Malaysian retail and investment conglomerate Macrovalue for about US$93 million.

As a result, the group has declared a special dividend of US$0.443 per share. This is on top of an interim dividend of US$0.035 per share, unchanged from the previous year. Both will be paid on Oct 15.

However, after including non-trading items, the group would have made a loss of US$37.6 million in H1 FY2025, as opposed to a profit of US$95.1 million in the year-ago period.

Loss per share would then be US$0.0279 in the recorded period, reversing from an earnings per share of US$0.0707 previously.

DFI noted that it expects underlying profit to be between US$250 million and US$270 million in 2025.

“Despite a more cautious revenue outlook, the group expects to deliver stronger profitability through enhanced operational efficiency and disciplined cost management,” it said.

It also expects 0.5 to 1 per cent growth in revenue for the full year, reflecting broader economic uncertainty and a sharper-than-expected decline in cigarette sales.

Shares of DFI ended Tuesday 1 per cent or US$0.03 higher at US$3.16.