DFI Retail Group Holdings (D01) H1 2025 earnings summary

Executive summary

• Underlying profit rose 39% year-over-year to US$105 million, driven by strong Health & Beauty and Food segment performance, improved associate contributions, and a value-focused strategy amid negative consumer sentiment in Asia.

• Portfolio optimization included divestments of minority stakes in Yonghui and Robinsons Retail, and the Singapore Food business, generating US$900 million in proceeds and providing flexibility for a special dividend.

• E-commerce transactions turned profitable, with order volume up 85% year-over-year, and retail media campaigns increased significantly.

• Special dividend of US¢44.30 per share (US$600 million total) declared, the first in 18 years, alongside an interim dividend.

• Accelerated growth in Health & Beauty, expansion of franchising in Indonesia, and major investments in store remodeling, IT upgrades, and supply chain automation planned.

Financial highlights

• Underlying profit attributable to shareholders reached US$105 million, up 39% year-over-year, driven by divestments and improved associate results.

• Total revenue for H1 2025 was US$4.4 billion, flat year-over-year on a like-for-like basis, excluding divestments and cigarette sales.

• Net cash position at 30 June 2025 was US$442 million after special and interim dividends, compared to net debt of US$468 million at end-2024.

• Free cash flow for H1 was US$89 million, up from US$61 million last year, driven by lower CapEx.

• Basic underlying EPS increased to US¢7.79 from US¢5.62 year-over-year.

Outlook and guidance

• Full-year underlying profit guidance raised to US$250–270 million, a 30% increase at midpoint.

• Organic revenue growth outlook revised to 0.5–1.0% due to economic uncertainty and cigarette sales decline.

• Focus remains on margin expansion, operational efficiency, cost optimization, and disciplined capital allocation.