DFI Retail Group Holdings (D01) H1 2024 earnings summary

Executive summary

• Underlying profit attributable to shareholders rose to $76 million, up 127% year-over-year, driven by strong Food and Convenience performance, improved results from associates, and reduced losses in Yonghui.

• Interim dividend increased 17% to $0.035 per share, reflecting confidence in ongoing profitability.

• Net debt reduced to $549 million as of June 2024, a significant improvement year-over-year.

• E-commerce volume grew 40% year-over-year, with a pivot to a sustainable, non-dilutive model and improved profit contribution.

• Strategic focus on customer value, local leadership, disciplined capital allocation, and ongoing portfolio optimization and ESG commitments.

Financial highlights

• Total revenue (including associates/JVs) was $12.643 billion, down 6% year-over-year; subsidiary revenues were $4.405 billion, down 4%.

• Underlying profit attributable to shareholders was $76 million, up from $33 million last year; reported profit was $95 million, up from $8 million.

• Underlying EPS increased 128% to $0.0562; interim dividend per share rose 17% to $0.035.

• Operating profit rose to $168.2 million from $127.6 million year-over-year; operating margin improved to 3.8%.

• Free cash flow rose nearly 40% to $61 million; cash and cash equivalents at period end were $303.6 million.

Outlook and guidance

• Full-year 2024 underlying profit guidance maintained at $180–$220 million; capex expected at $200–$240 million.

• Continued net debt reduction and dividend growth anticipated.

• Second half revenue expected to follow a similar trend as the first half amid ongoing macroeconomic challenges and shifting consumer behaviors.

• Focus remains on operating efficiency, omnichannel expansion, and monetization of loyalty programs.