The Hong Kong-based DFI Retail Group has recently announced a steady increase in sales for the first quarter of the year, primarily fueled by their health and beauty sector.
Excluding cigarette sales, the DFI Retail Group reports a 4% sales rise on a year-on-year basis, using a constant currency, and a 3% increase on a like-for-like (LFL) basis. The health and beauty division is credited with a large part of this growth, with a 7% boost in LFL sales, thanks to increased transaction counts and larger basket sizes.
In Hong Kong, Mannings saw notable growth due to a surge in tourist store sales, driven by an uptick in visitor arrivals. Similarly, Guardian’s sales in Southeast Asia reflected a robust performance in the wellness category. Standout growth was seen in Indonesia and Vietnam, which delivered double-digit LFL sales growth due to increased customer traffic.
Excluding cigarette sales, the convenience division, which includes 7-Eleven, saw a 2% growth on a LFL basis. Sales at 7-Eleven increased by 3% in both Hong Kong and Singapore, while sales in South China remained stable.
The food division showed signs of improvement, with a reported 1% sales increase in Hong Kong. Home furnishings (Ikea) also showed positive trends, with a 4% growth. Both Hong Kong and Taiwan saw mid-single-digit LFL sales growth, owing to Chinese New Year promotions. Meanwhile, Indonesia bolstered its omnichannel strategy with robust online sales growth.
Operating profit from continuing businesses, excluding impacts from the divestment of the Singapore food business and the closure of Mannings China, grew by 12%. The underlying profit from ongoing businesses significantly increased by 49%.
Despite a dynamic trading environment and increasing geopolitical uncertainties, DFI management stated the group remained resilient. This resilience was attributed to sourcing improvements and cost optimization, which supported price competitiveness and mitigated the impact of oil price volatility.
DFI confirmed its full-year guidance of an underlying profit in the range of US$270 million to $300 million, supported by an organic revenue growth of approximately 2-3%.
What division drove the most growth for DFI Retail Group in the first quarter?
The health and beauty division was the primary driver of growth in the first quarter, with a 7% increase in LFL sales.
How did geopolitical uncertainties impact DFI Retail Group’s performance?
Despite geopolitical uncertainties, DFI remained resilient due to sourcing improvements and cost optimization, which helped maintain price competitiveness and minimize the impact of oil price volatility.
What is the projected full-year guidance for DFI’s underlying profit?
DFI’s projected full-year guidance for underlying profit is in the range of US$270 million to $300 million, supported by an expected organic revenue growth of about 2-3%.
