DFI Retail Group has reported a loss of US$52 million for 1HFY2022, versus earnings of US$32 million, as the pandemic continues to weigh down on its businesses ranging from grocery outlets to supermarkets to F&B.
The company warns that earnings for the current full year ending Dec 2022 will be “materially lower” vs FY2021.
Back in 1HFY2021, the company paid an interim dividend of 3 US cents. It will cut the payout to 1 cent for 1HFY2022.
“The pandemic has continued to have a significant adverse effect on all of the Group’s businesses, with the first quarter particularly difficult on the Chinese mainland and in Hong Kong,” says chairman Ben Keswick.
“Profits are also being impacted by supply chain and inflationary pressures,” he adds.
Nevertheless, the company remains “confident” that additional investment being made to make its operations more efficient will deliver sustainable growth when the impact of the pandemic recedes, says Keswick.
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For 1HFY2022, the company’s total revenue was US$14 billion, up slightly from US$13.95 billion recorded for the year-earlier period.
While its health and beauty businesses enjoyed earnings growth, its grocery retail and convenience segments suffered.
It had to bear with a substantial loss of US$64 million incurred by Yonghui, its supermarket associate in China, and US$26 million of red ink from Maxim, which runs a chain of F&B outlets in Hong Kong.
DFI Retail Group shares closed on July 28 at US$2.92, up 0.34%.
