DFI Retail Group Holdings (D01) H2 2025 earnings summary

Executive summary

• Underlying profit rose 35% year-over-year to $270 million, reaching the top end of guidance, driven by like-for-like recovery, margin improvement, and portfolio actions including divestments.

• Revenue from subsidiaries increased 0.5% year-over-year to $8.9 billion on an organic basis, with a stronger second half and improved customer confidence.

• The group completed a strategic reset in 2025, simplifying the portfolio, focusing on core businesses, and expanding its omnichannel ecosystem.

• Total shareholder return for the year was 93%, outperforming retail peers and global indices.

• Delivered strong underlying profit growth, improved digital monetisation, and deleveraged the balance sheet.

Financial highlights

• Underlying profit reached $270 million, up 35% year-over-year, or 18% on a restated comparable basis.

• Revenue from subsidiaries grew 0.5% year-over-year to $8,869M.

• Operating profit increased 7% year-over-year, with operating margins at 4.2%, up 30 basis points.

• Free cash flow grew 78% to $281 million, and operating cash flow rose nearly 30% to $430 million.

• Net cash position of $538 million after paying a $600 million special dividend and returning $740 million to shareholders.

Outlook and guidance

• Organic revenue growth of 2%-3% expected for 2026, excluding divested businesses.

• Underlying profit guidance for 2026 is $270 million to $300 million, implying 13%-25% growth.

• CapEx planned at $200 million-$230 million, with focus on store renewals and digital investment.

• Return on capital employed (ROCE) targeted to rise from 9.4% to 11%-13% in 2026, with a pathway to 15% by 2028.

• Dividend payout policy set at 70% of underlying profit.