DFI Retail Group has reported a significant uplift in first-half profit as all subsidiaries recorded positive sales momentum throughout the period.
The group’s underlying profit from continuing operations jumped 44 per cent to US$117 million during the six months ended June 30.
Like-for-like (LFL) sales improved 3 per cent, as health and beauty sustained strong performance while convenience and home furnishings returned to growth.
The health and beauty segment saw a 6 per cent increase in LFL sales. Mannings delivered a 5 per cent growth in Hong Kong, driven by increased basket size and higher visitor arrivals. In Southeast Asia, Guardian achieved strong growth of 9 per cent, with Indonesia and Vietnam recording close to 20 per cent improvement.
The convenience segment, which operates 7-Eleven stores in Hong Kong, Macao, Singapore and South China, lifted LFL sales by 2 per cent.
The home furnishings division, which runs Ikea stores in Hong Kong, Macau, Taiwan, and Indonesia, posted a 4 per cent LFL sales increase, compared to a decline of 6 per cent in the prior year period.
The food division, which operates major supermarket and grocery chains across East and Southeast Asia, saw a modest 0.5 per cent uplift in LFL sales.
CEO Scott Price said the first-half results reflect the strength of the company’s strategy, which includes a sharper value for customers, a strong focus on returns and execution with discipline.
“As we continue to deepen customer engagement and build new profit pools through the DFI Omni Platform, we are well-positioned to deliver sustainable long-term value with greater earnings resilience,” he added.
Last month, the group announced the acquisition of 100 per cent interest in Cody Hong Kong, an outdoor advertising solution provider, for approximately $3.8 million from ARN Media Network. The deal will advance DFI’s strategy to build a “full-funnel advertising solution” in Hong Kong through DFIQ Media.
Earlier this month, DFI also made several changes to its leadership team, with Andrew Wong appointed as CEO of DFI Ikea, Curtis Liu as CEO of health and beauty, Tom van der Lee as CEO of Food, and Kaizhi Wu as group CFO.
The group has raised its outlook for the full year, expecting organic revenue growth of 3-4 per cent and underlying profit of between $285 million and $305 million.
Despite an elevated oil price outlook for the remainder of the year, the group expects to deliver stronger profitability supported by enhanced operational efficiency.
