DFI Retail Group Holdings (D01) investor relations material

Executive summary

• Underlying profit from continuing businesses rose 44% year-over-year to US$117 million, driven by strong performance in Health & Beauty, Convenience, and Home Furnishings, with digital and omnichannel initiatives contributing 35% of revenue growth.

• Subsidiary revenue increased 4.3% year-over-year to US$4.1 billion, with like-for-like sales growth across most formats.

• Interim dividend per share increased 77% year-over-year to US¢6.20, reflecting robust cash flow and a 70% payout policy.

• Health & Beauty, Convenience, and Home Furnishings all returned to growth, with significant market share gains and new store openings.

• Acquisition of Cody Hong Kong strengthens digital advertising capabilities and is expected to be break-even or accretive within 12-18 months.

Financial highlights

• Revenue from continuing businesses was US$4.1 billion, up 4% year-over-year; total revenue including Maxim's reached US$5.6 billion.

• Underlying profit attributable to shareholders from continuing businesses grew 44% to US$117 million; underlying EPS rose to US¢8.69.

• Operating cash flow after lease payments increased 16% year-over-year to US$178 million; free cash flow was US$85 million, down 5% due to higher capex.

• Return on capital employed improved to 12% as of 1H26, up from 9% in FY25.

• SG&A costs declined 15% year-over-year, with further reductions expected.

Outlook and guidance

• Full-year organic sales growth guidance raised to 3%-4% (from 2%-3%), and underlying profit guidance increased to US$285–305 million.

• CapEx guidance maintained at US$200-220 million; dividend payout policy (70%) and ROCE targets unchanged.

• Management expects margin improvement in the second half across all major segments, with continued cost savings and digital investments.

• Focus remains on strengthening value proposition, expanding store network, and accelerating digital asset monetisation.