DFI Retail Group hikes dividend payout ratio to 70% in three-year plan
The group is targeting a compound annual growth rate of 11 to 15% for its underlying profit
[SINGAPORE] DFI Retail Group has unveiled a three-year strategic roadmap targeting double-digit profit growth and a higher dividend payout, as the supermarket and retail store operator moves to leverage its scale and digital capabilities.
In an investor day presentation on Dec 3, 2025, the group outlined a plan to increase underlying profit at a compound annual growth rate of 11 to 15 per cent between 2025 and 2028. This means recording an underlying profit of US$310 million to US$350 million by 2028.
Alongside its earnings targets, DFI announced a new dividend policy, raising its payout ratio to 70 per cent, effective from the final dividend of 2025. This is an increase from the previous guidance of a 60 per cent payout.
“The new 70 per cent dividend payout policy reflects our confidence in DFI’s cash generation, and commitment to returning value to shareholders,” said Tom van der Lee, group chief financial officer.
DFI also expects to improve its return on capital employed to at least 15 per cent by 2028. Revenue from organic subsidiaries is projected to grow by an average of 2 to 3 per cent annually through 2028, supported by increased store sales density, operational efficiencies and market share gains.
To achieve its 2028 ambitions, DFI identified several strategic priorities, including plans to expand its health and beauty and convenience store networks.
Other key initiatives include increasing store sales density, launching more own-brand products, and leveraging customer data insights to help expand e-commerce and monetise retail media. The group targets an online sales mix of 7 to 10 per cent by 2028.
Scott Price, group chief executive, stated that the company is “uniquely positioned to deliver sustained, profitable growth”.
“Customers across Asia are increasingly seeking quality and convenience at great value,” Price said. “Our strong balance sheet and disciplined use of capital give us the flexibility to invest in growth while consistently increasing returns to shareholders in the years ahead.”
Shares of DFI closed US$0.17 or 4.9 per cent higher at US$3.67 on Wednesday, before the release.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
