Singapore food business divestment boosts DFI Retail Group’s cash position

Published 22/07/2025, 12:24
Singapore food business divestment boosts DFI Retail Group’s cash position

HONG KONG - DFI Retail Group Holdings Ltd reported a 39% increase in underlying earnings to US$105 million for the first half of 2025, driven by improved performance in its Health & Beauty division and higher contributions from associates. The company announced plans to divest its Singapore Food business to Macrovalue for approximately US$93 million, with the transaction expected to close by year-end.

The company declared a special dividend of US¢44.30 per share, its first in 18 years, in addition to an interim dividend of US¢3.50 per share, returning a total of US$647 million to shareholders.

DFI’s strategic portfolio simplification continued with the completed divestment of its stakes in Yonghui and Robinsons Retail, generating approximately US$900 million in gross proceeds. These transactions strengthened the company’s balance sheet, resulting in a net cash position of US$442 million as of June 30, compared to US$468 million net debt at the end of 2024.

"We are pleased to report strong first-half underlying profit growth, supported by improved Health & Beauty and Food profitability, higher contribution from associates, and a stabilizing revenue growth trend," said Scott Price, Group Chief Executive.

Health & Beauty delivered 4% like-for-like sales growth, with Mannings Hong Kong showing particularly strong performance at 6%. The Convenience division faced challenges from cigarette tax increases in Hong Kong, while the Food division’s profit grew 14% year-on-year.

The company raised its full-year underlying profit guidance to between US$250 million and US$270 million, up from its previous forecast of US$230-270 million, despite revising its organic revenue growth outlook down to 0.5-1.0% from approximately 2%.

Based on a press release statement, DFI Retail Group continues to focus on its strategic pivot from a portfolio investor to an operating company centered on retail excellence, customer access, omnichannel capabilities, operational efficiency, and portfolio optimization.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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