DFI Retail Group posts 72% drop in underlying earnings to US$29m
Uma Devi
DFI RETAIL Group on Thursday (Mar 2) posted underlying earnings of US$29 million for the fiscal year 2022 ended December, down 72 per cent from earnings of US$105 million in FY2021.
The group’s net loss for the year stood at US$114.6 million versus earnings of US$102.9 million in the prior year. The loss was primarily due to a US$171 million impairment loss related to the group’s investment in Robinsons Retail.
Underlying earnings distinguishes between the group’s ongoing business performance and non-trading items, DFI said in its financial results posted on the bourse on Thursday (Mar 2).
Total revenue for the year – which included all of DFI’s associates and joint ventures – fell 1 per cent to US$27.6 billion from US$27.9 billion.
Reported subsidiary sales, meanwhile, held steady at US$9.2 billion. DFI said strong revenue growth in its health and beauty segments was partially offset by lower sales in the grocery retail division.
The fall in sales in the grocery retail segment was primarily driven by the easing of movement restrictions in South-east Asia, which led to a reduction in eating at home by customers, as well as store disruptions in Singapore due to essential renovations to improve the Cold Storage stores, said DFI.
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The company attributed the lower full year underlying profit to the continuing impact of pandemic, inflationary pressures, as well as its increased investment in the digital area.
These factors weighed on the group’s H1 results, as profit contributions from the grocery retail and convenience divisions, as well as contributions from its associates, were all hit.
The group however said there was a “substantial improvement” in profitability in H2. DFI booked an underlying profit of US$80 million in H2, versus an underlying loss of US$52 million in H1.
The board of directors has declared a final dividend of US$0.02, down from the final dividend of US$0.065 in FY2021.
This brings the company’s total dividend payout for FY2022 to US$0.03. In FY2021, the company paid out US$0.095 in dividends.
The dividend, if approved by the company’s shareholders at the annual general meeting on May 4, will be paid out to shareholders on May 10.
Looking ahead, DFI said it expects its performance to improve in 2023. The company will continue to monitor the impact of inflationary pressures and changes in consumer sentiment.
DFI added that its overall results will largely depend on the recovery of its health and beauty and restaurants businesses in Hong Kong, as well as an improved performance by its associate, Yonghui, in China.
Shares of DFI Retail Group rose 1.6 per cent or US$0.05 to end Thursday at US$3.24.
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