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HONG KONG - DFI Retail Group Holdings Limited provided an update on its financial and operational performance for the first quarter of 2025, revealing varied results across its divisions amid a challenging global economic landscape.
The company reported that underlying subsidiary sales for Q1 were 1% lower than the same period last year, though sales remained stable on a like-for-like basis. The Health and Beauty segment showed strength with a 4% year-on-year increase in like-for-like sales. However, the Convenience division experienced a 6% decline due to a recent tax hike on cigarettes in Hong Kong. Despite this, non-cigarette sales were down only 2%, suggesting resilience in other areas of the business.
DFI Retail Group’s Food division also faced headwinds, with like-for-like sales slightly below Q1 of 2024. Nonetheless, the company managed to maintain stable sales in Hong Kong, attributing this to increased traffic and a growing omnichannel presence. The Home Furnishings division, while challenged by competition, saw a significant recovery in profit due to effective cost control.
The Group’s digital initiatives continue to bear fruit, with daily e-commerce order volumes surging by over 70% year-on-year. Additionally, the Retail Media segment is gaining traction with a substantial number of advertising campaigns completed in the quarter.
On the associates’ front, Maxim’s, a 50% owned associate, reported a substantial recovery in profit, while Robinsons Retail saw a 3% growth in like-for-like sales. However, Robinsons Retail’s profit dropped significantly due to a one-time gain in the previous year.
The Group also completed the divestment of its Yonghui stake in February 2025, with net proceeds contributing to a significant reduction in net debt. Moreover, on March 24, 2025, DFI Retail Group announced an agreement to divest its Singapore Food business to Macrovalue for approximately US$93 million, a move aimed at focusing capital on high-growth areas.
Looking ahead, DFI Retail Group is committed to growing market share and expanding its omnichannel presence, with full-year guidance for underlying profit attributable to shareholders estimated between US$230 million and US$270 million. This forecast is underpinned by expected organic revenue growth of about 2%.
This interim management statement is based on a press release issued by DFI Retail Group Holdings Limited to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom (TADAWUL:4280).
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