LONDON: DFI Retail Group Holdings Limited reported a 39% increase in underlying profit for the first half of 2025 on Tuesday and announced its first special dividend in 18 years, signaling confidence in its strategic overhaul.
The pan-Asian retailer said underlying profit attributable to shareholders rose to $105 million for the six months ended June 30, up from $76 million a year earlier. This key measure excludes non-trading items.
The company declared a special dividend of 44.30 U.S. cents per share, totaling approximately $600 million. Combined with the regular interim dividend of 3.50 U.S. cents per share, DFI will return $647 million to shareholders. Both dividends are payable Oct. 15 to shareholders of record Aug. 22.
“These decisions underscore our confidence in DFI’s long-term growth strategy and commitment to shareholder returns,” Group Chief Executive Scott Price said in a statement.
Key Drivers and Performance:
- Strong Segments: The Health & Beauty division led growth with a 4% increase in like-for-like sales, particularly driven by its Mannings chain in Hong Kong. The Food division also saw profit growth.
- Portfolio Shifts: DFI highlighted progress in simplifying its portfolio, including the completed divestment of minority stakes in Yonghui and Robinsons Retail Holdings, generating roughly $900 million, and the pending sale of its Singapore Food business for about $93 million.
- Financial Position: Proceeds from divestments transformed the company’s balance sheet from net debt of $468 million at the end of 2024 to a net cash position of $442 million by June 30, 2025.
- Convenience Challenge: The Convenience division (primarily 7-Eleven) faced a 4% sales decline, largely due to reduced cigarette volumes following a significant tax increase in Hong Kong. Profit in this division fell 18%.
- Digital Growth: E-commerce order volume surged 85% year-on-year. The company’s retail media business, DFIQ, also expanded significantly.
While citing broader economic uncertainty and a sharper-than-expected decline in cigarette sales, DFI raised its full-year underlying profit guidance. The company now expects underlying profit attributable to shareholders for 2025 to be between $250 million and $270 million, up from its previous forecast of $230 million to $270 million.
However, DFI lowered its full-year organic revenue growth outlook to a range of 0.5% to 1.0%, down from approximately 2%.
DFI Retail Group operates supermarkets (Wellcome, Giant), health and beauty stores (Mannings, Guardian), convenience stores (7-Eleven), and home furnishings stores (IKEA) across Asia.