DFI Retail Group swung to a US$118 million net profit for the six months ended Jun 30, compared with a US$38 million loss a year earlier, as stronger sales in its Health & Beauty chain and a rebound in convenience and home-furnishings stores offset softer group revenue.
Earnings per share improved to 8.76 US cents from a 2.79-cent loss, while underlying earnings per share rose 12 per cent year-on-year (YoY) to 8.69 US cents. The board declared an interim dividend of 6.20 US cents a share, up 77 per cent YoY, payable on 14 Oct 2026 to shareholders on the register at the close of business on 21 Aug.
Group revenue slipped 6 per cent YoY to US$4.14 billion as the divestment of the Singapore food business and the closure of Mannings China weighed on the top line. On a like-for-like basis, however, subsidiary sales from continuing businesses grew 3 per cent, helped by a 6 per cent LFL increase in Health & Beauty and a return to positive LFLs in Convenience and Home Furnishings.
By segment, underlying operating profit before IFRS 16 adjustments was led by Health & Beauty at US$108.7 million (flat YoY), followed by Convenience at US$36.6 million, Food at US$17.1 million, and Home Furnishings at US$14.7 million. Overall underlying profit attributable to shareholders climbed 11 per cent to US$117 million, reflecting lower financing costs and leaner overheads after a group-wide cost-review exercise.
The retailer’s digital businesses also turned profitable; e-commerce and the DFIQ Media retail-media arm contributed roughly 35 per cent of total sales growth, supported by a rise in online penetration to 6.9 per cent and a three-fold jump in media revenues.
Offsetting these gains, total revenue was dragged by the absence of Singapore Food and an ongoing decline in lower-margin cigarette sales. Macau grocery sales remained subdued because of cross-border shopping, and the Indonesia IKEA operation continued to see weak offline demand.
During the half, the group agreed to acquire outdoor-advertising specialist Cody Hong Kong for about US$3.8 million to expand its retail-media inventory, rolled out GenAI tools to improve assortment and demand planning, and announced a slate of senior management changes effective 1 Aug 2026.
Chief executive Scott Price said the 44 per cent jump in underlying profit from continuing businesses was driven by “a sharper value proposition, disciplined execution and sustained momentum in Health & Beauty,” while price reinvestments had lifted food volumes in Hong Kong. He added that integrating Cody HK’s assets with the group’s store network and loyalty data would accelerate the growth of DFIQ Media and diversify earnings.
Looking ahead, DFI raised its full-year organic revenue growth target to 3-4 per cent from 2-3 per cent and now expects underlying profit of US$285 million to US$305 million, citing improved operational efficiency that should partly offset pressure from higher oil prices. The company also reaffirmed its policy to distribute 70 per cent of full-year earnings as dividends.