DFI Retail Group Holdings Limited Half-Year Results For The Six Months Ended 30th June 2024
- Written by Media Outreach
Hong Kong SAR- Media OutReach Newswire - 1 August 2024 - The following announcement was issued today to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom.Highlights
OVERVIEW The Group reported first half underlying profit of US$76 million, up from US$33 million in the same period last year, primarily driven by the Convenience and Food divisions. Associates' performance also improved due to reduced loss from Yonghui. Total first half revenue for the Group, including 100% of associates and joint ventures, declined by 6% year-on-year to US$12.6 billion, primarily driven by lower sales in Yonghui. Subsidiary sales, excluding the impact of the divestment of the Group's Malaysia food business in March 2023, came in 2% below the prior year. The underlying profit of subsidiaries was US$73 million for the first half, up over 80% year-on-year. The Group's associates reported an underlying profit of US$3 million, an improvement of US$10 million from the same period last year, resulting in an underlying profit attributable to shareholders of US$76 million for the first half. Operating cash flow, after lease payments, for the period was a net inflow of US$155 million, compared with US$149 million in the first half of 2023. As at 30th June 2024, the Group's net debt was US$549 million, down from US$618 million at 31st December 2023. The Group declared an interim dividend of US¢3.50 per share, representing an increase of 17% compared to the same period last year. OPERATING PERFORMANCESubsidiaries Revenue for the Group's Food division in the first half reduced marginally to US$1.6 billion, after excluding the impact of the divestment of the Group's Malaysia food business last year. Divisional profit increased to US$26 million driven by improved sales mix and disciplined cost control. Hong Kong sales remained largely stable year-on-year, despite the outflow of residents to the Chinese mainland at weekends and pent-up demand for outbound travel during holiday periods. This sales performance has been supported by continued market share gain, strong in-store execution and some growth in basket sizes. The Wellcome team continues to evolve its range and assortment by introducing new local brands to appeal to evolving customer needs and leveraging data to assist in the decision-making process. To expand its channels to market, Wellcome also launched a partnership with Foodpanda in May to provide a 45-minute click-and-deliver service for both fresh product and everyday essentials with encouraging sales momentum. While Singapore food like-for-like ('LFL') sales performance continued to be affected by challenging consumer sentiment, a better product margin mix and strong cost control significantly improved profitability. Revenue for the Convenience division was marginally lower compared to the corresponding period in 2023. In Hong Kong, LFL sales performance was affected by reduced cigarette volumes following tax increases that came into effect at the end of February, while 7-Eleven Singapore and South China reported robust LFL sales growth, driven by increased foot traffic and strong performance in non-cigarette categories led by ready-to-eat ('RTE'). Overall, non-cigarette LFL sales increased by approximately 4% for the period, with RTE sales growing 13%. Favourable product mix shift towards non-cigarette categories supported margin accretion and profit growth across all markets. As a result, Convenience profit grew 73% in the first half compared to the same period last year. Sales for the Health and Beauty division were broadly in line with the same period last year, with profit up 3% year-on-year. The division reported good LFL sales performance in the first quarter which then decelerated in the second quarter, particularly in Hong Kong. Mannings Hong Kong performance in the second quarter was affected by a strong comparable period last year due to consumption voucher disbursements which occurred in April 2023, outbound travel during the extended holiday period of Easter and Ching Ming Festival, and to a...
- Underlying Group profit attributable to shareholders of US$76 million, up from US$33 million in the prior year
- Good profit growth in Food and Convenience
- Health and Beauty profit contribution grew 3%
- Continued net debt reduction
- Interim dividend of US¢3.50 per share
OVERVIEW The Group reported first half underlying profit of US$76 million, up from US$33 million in the same period last year, primarily driven by the Convenience and Food divisions. Associates' performance also improved due to reduced loss from Yonghui. Total first half revenue for the Group, including 100% of associates and joint ventures, declined by 6% year-on-year to US$12.6 billion, primarily driven by lower sales in Yonghui. Subsidiary sales, excluding the impact of the divestment of the Group's Malaysia food business in March 2023, came in 2% below the prior year. The underlying profit of subsidiaries was US$73 million for the first half, up over 80% year-on-year. The Group's associates reported an underlying profit of US$3 million, an improvement of US$10 million from the same period last year, resulting in an underlying profit attributable to shareholders of US$76 million for the first half. Operating cash flow, after lease payments, for the period was a net inflow of US$155 million, compared with US$149 million in the first half of 2023. As at 30th June 2024, the Group's net debt was US$549 million, down from US$618 million at 31st December 2023. The Group declared an interim dividend of US¢3.50 per share, representing an increase of 17% compared to the same period last year. OPERATING PERFORMANCESubsidiaries Revenue for the Group's Food division in the first half reduced marginally to US$1.6 billion, after excluding the impact of the divestment of the Group's Malaysia food business last year. Divisional profit increased to US$26 million driven by improved sales mix and disciplined cost control. Hong Kong sales remained largely stable year-on-year, despite the outflow of residents to the Chinese mainland at weekends and pent-up demand for outbound travel during holiday periods. This sales performance has been supported by continued market share gain, strong in-store execution and some growth in basket sizes. The Wellcome team continues to evolve its range and assortment by introducing new local brands to appeal to evolving customer needs and leveraging data to assist in the decision-making process. To expand its channels to market, Wellcome also launched a partnership with Foodpanda in May to provide a 45-minute click-and-deliver service for both fresh product and everyday essentials with encouraging sales momentum. While Singapore food like-for-like ('LFL') sales performance continued to be affected by challenging consumer sentiment, a better product margin mix and strong cost control significantly improved profitability. Revenue for the Convenience division was marginally lower compared to the corresponding period in 2023. In Hong Kong, LFL sales performance was affected by reduced cigarette volumes following tax increases that came into effect at the end of February, while 7-Eleven Singapore and South China reported robust LFL sales growth, driven by increased foot traffic and strong performance in non-cigarette categories led by ready-to-eat ('RTE'). Overall, non-cigarette LFL sales increased by approximately 4% for the period, with RTE sales growing 13%. Favourable product mix shift towards non-cigarette categories supported margin accretion and profit growth across all markets. As a result, Convenience profit grew 73% in the first half compared to the same period last year. Sales for the Health and Beauty division were broadly in line with the same period last year, with profit up 3% year-on-year. The division reported good LFL sales performance in the first quarter which then decelerated in the second quarter, particularly in Hong Kong. Mannings Hong Kong performance in the second quarter was affected by a strong comparable period last year due to consumption voucher disbursements which occurred in April 2023, outbound travel during the extended holiday period of Easter and Ching Ming Festival, and to a...