Dali Everyday Grocery Philippines is raising doubts on its financial viability following a wider net loss this year as the value of its liabilities closed in on that of its assets. 

Har Discount Philippines Inc (HDPI) –  local operator of Dali – posted a net loss of US$34.56 million (PHP1.97 billion), up 5 per cent from $32.98 million in 2023. Revenues rose 52.1 per cent to $595.26 million on higher sales, while gross income more than doubled to $58.42 million.

However, expenses for the convenience store chain also soared. The cost of sales climbed 46.9 per cent to $536.67 million, and operating expenses increased by 60 per cent to $84.39 million. Total assets rose 70 per cent to $368.77 million, but liabilities grew 110.8 per cent to $355.26 million.

The company’s equity also dropped 73 per cent to $12.79 million after its deficit swelled by 60 per cent to $91.93 million.

Independent auditor SyCip Gorres Velayo & Co. (SGV) has raised concerns about the financial health of HDPI, warning that “material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.”

SGV noted that the business “may be unable to realise its assets and discharge its liabilities in the normal course of business,” highlighting ongoing challenges in meeting its financial obligations.

In response, HDPI expressed confidence in its outlook, saying that profit margins are expected to improve over the next five years through cost-efficiency measures.

“The company will be able to generate sufficient cash flows from its operations to meet its obligations as and when they fall due,” it added.