REG - DFI Retail Group - Interim Management Statement

DFI Retail groupAnnouncement

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RNS Number : 3288B  DFI Retail Group Holdings Ltd  21 April 2026

Announcement

 

The following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United Kingdom.

 

DFI RETAIL GROUP HOLDINGS LIMITED

Interim Management Statement

 

21 April 2026 - DFI Retail Group Holdings Limited today issues its Interim
Management Statement for the first quarter of 2026.

 

OVERVIEW

The global macroeconomic climate continues to evolve amid rising geopolitical
uncertainties. The Group's focus on daily essential spending, supported by a
strengthened value customer proposition, reinforces its resilience in
navigating a dynamic trading environment. Ongoing sourcing improvement and
cost optimisation initiatives support price competitiveness and limit the
impact of oil price volatility on overall profitability. The Group reaffirms
its 2026 full-year guidance, including an underlying profit attributable to
shareholders of US$270 million to US$300 million and a dividend payout policy
of 70%.

 

In its home market of Hong Kong, total retail sales continued to show
recovery, supported by higher tourist arrivals despite ongoing northbound
travel. The Group continued to deliver improved performance through the
disciplined execution of clear, format-focused strategic priorities. These
include expanding wellness sales and services in Health & Beauty, driving
growth in higher-margin non-cigarette categories in Convenience, reinvesting
in pricing for core Food basket items and high-volume cash-and-carry home
goods - all while driving efficiencies to achieve a lean overhead structure
and strengthening core retail fundamentals through data insights.

 

For the first quarter of 2026, the Group's underlying subsidiary sales from
continuing businesses1, excluding cigarettes, increased by 4% year-on-year on
a constant currency basis and 3% on a like-for-like (LFL) basis. The growth
was driven by strong performances in the Health & Beauty and Home
Furnishings segments, as well as a return to growth in Convenience. Operating
profit from continuing businesses(1) grew 12% year-on-year due to disciplined
cost control. Overall underlying profit from continuing businesses2 grew 49%
compared to the same period last year, supported by lower financing costs.

1   Excluding impacts of divestment of Singapore Food business and closure
of Mannings China

2   Excluding impacts of divestment of Singapore Food business, minority
stake of Robinsons Retail and closure of Mannings China

To enhance long-term cost efficiency and deliver sustainable savings, the
Group undertook a comprehensive review of its cost structure. This includes
reallocating resources to format-level operations to improve agility and
responsiveness to market dynamics. The Group remains committed to reducing
group central SG&A costs as a percentage of sales to 1.1% by 2028,
supported by ongoing initiatives in overhead optimisation, offshoring and
outsourcing roles where efficiency gains can be achieved.

 

The Group continues to maintain a strong balance sheet with US$56 million net
cash as of 31 March 2026. The Group remains focused on increasing total
shareholder returns while maintaining financial flexibility to pursue
inorganic opportunities that accelerate revenue growth and create long-term
strategic value. The Group remains on track to achieve its mid-term return of
capital employed (ROCE) target of above 15%.

 

OPERATING PERFORMANCE

Subsidiaries

The Health & Beauty division reported 7% LFL sales growth, supported by
increased transaction counts and larger basket size. All key markets delivered
higher wellness sales penetration, as Mannings and Guardian further
strengthened their positioning as the trusted advisor for wellness. In Hong
Kong, Mannings' performance was driven by robust growth in tourist store sales
resulting from increased visitor arrivals. In Southeast Asia, Guardian's LFL
sales growth accelerated to 9%, reflecting strong wellness category
performance and an expanding online presence. Notably, Indonesia and Vietnam
delivered double-digit growth in LFL sales, underpinned by higher footfall and
effective promotional campaigns. Excluding the impact of cost reallocation and
closure of Mannings China, divisional profit grew 2% year-on-year, with margin
decline primarily due to intensified competition in Malaysia and a higher mix
of online sales from third-party marketplaces.

 

Excluding cigarettes, sales of the Convenience division grew 2% on a LFL
basis, supported by continued growth in higher-margin categories such as
ready-to-eat (RTE) and limited-edition collectibles. Even including
cigarettes, LFL sales returned to positive growth of 1%. In Hong Kong, the
7-Eleven team remains focused on broadening shopper missions and engaging
younger demographics through an expanded non-food assortment, including
collectable products and K-pop merchandise. This resulted in a return to
positive growth of 3% in LFL sales excluding cigarettes. In Singapore, LFL
sales excluding cigarettes increased by 3%, led by strong pre-Chinese New Year
performance. In South China, network expansion, the continued roll-out of Food
Bars, and strong online sales performance contributed to 5% sales growth on a
constant currency basis, while LFL sales remained stable compared to the same
period of last year. Excluding cost reallocation impact, profit increased by
4%, driven by a favourable sales mix shift towards higher-margin non-cigarette
categories.

 

As consumers pivot towards value, the Hong Kong team has enhanced its Food
sourcing capacity to provide a better value basket.  The Food division
reported improving performance with Hong Kong sales up 1% on a constant
currency basis, compared to a 1% decline in the same period last year. Total
Food volume increased 1% on a LFL basis, supported by Wellcome's Everyday Low
Price strategy and effective pre-holiday promotions, partially offset by
increased outbound travels during Chinese New Year. In Cambodia, Lucky
reported strong double-digit sales growth, attributed to continued network
expansion, with profit more than doubling year-on-year. Excluding the impact
of cost reallocation and the divestment of Singapore Food, overall divisional
profit increased by more than 30% compared with the same period last year.

 

LFL sales for the Home Furnishings division returned to positive growth of 4%,
marking a strong recovery after ten consecutive quarters of decline. Price
reinvestment in fast-moving SKUs drove increased transactions and items per
basket. Both Hong Kong and Taiwan delivered mid-single digit LFL sales growth,
driven by effective Chinese New Year promotions. IKEA Indonesia continued to
strengthen its omnichannel proposition with strong online sales growth of more
than 10%. Sales recovery and effective cost control measures contributed to
close to 50% growth in overall profit, excluding cost reallocation impact.

 

The Group continues to deepen its customer engagement through an expanded
omnichannel presence, with online daily order volume up by over 60%
year-on-year during the quarter to over 133,000 orders per day. Enhanced
proprietary insights drives greater personalisation and accelerates
monetisation of digital assets, including a threefold increase in DFIQ Media
and a rising online sales penetration to 6.8%3 as of March 2026. As a result,
DFI's overall digital ecosystem - including e-commerce, retail media (DFIQ
Media), insights monetisation (DFIQ Insights) and yuu - turned profitable in
the first quarter of 2026.

 

3   Excluding cigarettes under Convenience and IKEA food

Associates

Maxim's, the Group's 50%-owned associate, reported 4% revenue growth compared
to the same period last year, primarily driven by strong restaurant
performance in Southeast Asia and a return to growth in the Chinese mainland.
Effective cost optimisation across the markets contributed to an 18% year
on-year growth in overall profit.

 

OUTLOOK

The Group continues to make solid progress on its strategic initiatives to
drive market share gains and deliver sustained, profitable growth across all
segments. These include strengthening value proposition, enhancing omnichannel
capabilities, accelerating Own Brand innovation, deepening digital
monetisation, and leveraging data to deliver better outcomes for both
customers and supplier partners. The Group remains confident in its ability to
navigate an evolving market landscape, supported by enhanced financial
resilience through improved product sourcing, diversified procurement, and
ongoing cost optimisation.

 

The Group reaffirms its full-year guidance of underlying profit attributable
to shareholders in the range of US$270 million to US$300 million, supported by
an organic revenue growth of approximately 2-3%4, and a dividend payout policy
of 70%.

 

4   Excluding Singapore Food and Mannings China business

***

DFI Retail Group (the Group) is a leading Asian retailer, driven by its
purpose to 'Sustainably Serve Asia for Generations with Everyday Moments'.

 

At 31 December 2025, the Group and Maxim's operated 7,580 outlets across 12
markets, of which 5,529 stores were operated by subsidiaries. The Group,
together with Maxim's, employed over 79,000 people, with some 42,000 people
employed by subsidiaries. The Group had reported revenue of US$8.9 billion in
2025.

 

The Group is committed to delivering quality, value and service to consumers
across the region through trusted brands, strong local market positions, and a
broad retail ecosystem supported by extensive store networks, digital
capabilities and efficient supply chains.

 

The Group operates a portfolio of well-known brands across five key divisions:
health and beauty, convenience, food, home furnishings and restaurants under
Maxim's.

 

The Group's parent company, DFI Retail Group Holdings Limited, is incorporated
in Bermuda and has a primary listing in the equity shares (transition)
category of the London Stock Exchange, with secondary listings in Bermuda and
Singapore. The Group's businesses are managed from Hong Kong. DFI Retail Group
is a member of the Jardine Matheson group.

 

- end -

For further information, please contact:

 

 Karen Chan (Investor Relations)                         (852) 2299 1380
 Christine Chung (Corporate Communications and Affairs)  (852) 2299 1056
 Edward Tam (Brunswick Group Limited)                    (852) 9878 7201

 

This and other Group announcements can be accessed via the DFI Retail Group
corporate website at www.DFIretailgroup.com.

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