REG - DFI Retail Group Jardine Matheson Hdg - INTERIM MANAGEMENT STATEMENT

Jardine Matheson HoldingsAnnouncement

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RNS Number : 4990F  DFI Retail Group Holdings Ltd  30 October 2025

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

 

30 October 2025 - DFI Retail Group Holdings Limited today issues its Interim
Management Statement for the third quarter of 2025.

 

OVERVIEW

DFI Retail Group continues to drive improved results by addressing our
customers' ongoing shift towards value. By enhancing the proportion of "value
assortment" across all formats, the group has delivered steady recovery in
like-for-like (LFL) subsidiary sales growth since the second quarter of 2025,
following four consecutive quarters of decline. Gross margin was maintained by
driving value-added services in key wellness categories in Health & Beauty
and broadening our ready-to-eat (RTE) assortment towards higher-margin
non-cigarette categories in Convenience. Focused price investment funded
through better product sourcing, has driven gains in traffic and items per
basket in our Food and Home Furnishings segments.

 

For the third quarter of 2025, the Group's underlying subsidiary sales
excluding cigarettes were up 3% year-on-year and 2% on a LFL basis, led by
strong performances in the Health & Beauty and Food segments. Improved
profitability across subsidiary businesses led to a 23% increase in operating
profit compared to the same period last year. Overall underlying profit for
the third quarter of 2025 grew 48% year-on-year, supported by lower financing
costs and higher underlying profit from associates following the divestment of
Yonghui and Robinsons Retail.

 

The Group significantly strengthened its balance sheet with US$648 million net
cash as of 30 September 2025, compared to US$468 million net debt at 31
December 2024. Reflecting its strategic progress, the Group declared a special
dividend of US¢44.30 per share in July 2025, equivalent to US$600 million
paid in October 2025. The Group continues to prioritise total shareholder
return while maintaining financial flexibility to pursue inorganic growth
opportunities, as it strategically pivots from a portfolio investor to a
focused operating company. The Group is making good progress in achieving its
mid-term goal of a return of capital employed (ROCE) above 10%.

 

OPERATING PERFORMANCE

Subsidiaries

LFL sales for the Health and Beauty division in the third quarter of 2025
increased 5% year-on-year, driven by strong growth in the healthcare category
across all operating markets. In Hong Kong, Mannings performance was supported
by strong growth in tourist store sales benefiting from higher tourist
arrivals. In Southeast Asia, Guardian delivered a 5% LFL growth, led by
effective promotional campaigns and an expanding e-commerce presence.
Indonesia reported high single-digit LFL sales growth, with e-commerce sales
penetration exceeding 10%. Singapore also saw growing online sales, with over
80,000 app downloads since the launch of its new Guardian app in July 2025.
Improved operational efficiency contributed to a 7% growth in overall
divisional profit compared to the same period last year.

 

LFL sales for the Convenience division declined by 2% year-on-year due to
lower cigarette volume following tax increases in Hong Kong in February 2024.
Overall, non-cigarette LFL sales were largely stable compared to the third
quarter of 2024. In Hong Kong, the Group expects the profit impact from
declining cigarette sales to be offset by continued growth in higher-margin
non-cigarette categories, including RTE, in 2026 and beyond. 7-Eleven
Singapore reported improved performance with positive LFL sales growth. South
China delivered robust sales growth driven by network expansion, while LFL
sales remained broadly stable. The team continues to focus on increasing
footfall and sales by expanding its RTE proposition, with approximately 250
Food Bars launched during the first nine months of 2025. Favourable sales mix
shift towards higher-margin RTE products supported a return to positive profit
growth in the third quarter of 2025.

 

The Food division reported a 3% increase in LFL sales, with Singapore Food
performance benefiting from the S$600 consumption vouchers distributed to
eligible Singapore citizens in July 2025 to celebrate Singapore's 60th
anniversary. In Hong Kong, with consumers' pivot to value, LFL sales were
slightly higher compared to the same period last year, supported by the
Group's initiatives to enhance the value of consumers' food basket. Investment
in reduced pricing led to higher footfall and increased items per basket
during the quarter. The Wellcome team's effort in strategic direct sourcing of
the core basket, particularly fresh, will continue to drive both price
reinvestment and operating margin expansion in the coming years. Overall Food
profit doubled year-on-year, primarily driven by strong sales growth in
Singapore and improved profitability of Hong Kong Food.

 

Overall LFL sales trend of Home Furnishings showed notable improvement despite
a persistently challenging macro environment. Like the Food segment, the IKEA
team's focus on a value-driven, omnichannel proposition resulted in increased
transactions and items per basket. In Hong Kong, improving sales trend was
driven by effective promotions, including a new lower-price campaign launched
in August 2025. IKEA Taiwan also delivered solid LFL sales attributed to
strong e-commerce performance. Effective cost control measures supported a
significant improvement in overall underlying operating profit and margin.

 

The Group's expanded omnichannel ecosystem, including direct distribution
channels and quick commerce partnership with third-party platforms, drove
double-digit growth in e-commerce sales and a twofold increase in order
volume. DFIQ Media continues to gain momentum, with 290 targeted advertising
campaigns completed as of end of September 2025, compared to 45 for the same
period last year. The DFIQ Media team is developing a unique omnichannel
retail media solution that leverages DFI's proprietary data, expanded digital
presence, and extensive store footprint to deliver targeted, high-impact
advertising across multiple channels.

 

Associates

Maxim's, the Group's 50%-owned associate, reported revenue and profit slightly
below the same period last year, primarily due to the later timing of the
mid-autumn festival compared to last year and weaker restaurant performance in
Hong Kong, partially offset by strong growth in Southeast Asia.

 

OUTLOOK

The Group remains focused on delivering greater value for customers and
growing market share across all formats by enhancing assortment and
strengthening Own Brand offering through data-driven insights, expanding
omnichannel presence and accelerating monetisation of digital assets.
Optimising our cost structure, including overhead reduction, will further
enhance the Group's competitiveness by aligning resources with high-return
growth opportunities. A sharpened business portfolio with greater operational
focus supports subsidiary business growth both organically and inorganically
should shareholder-accretive opportunities arise.

 

For the full year of 2025, the Group maintains its guidance of underlying
profit attributable to shareholders between US$250 million and US$270 million,
supported by an organic revenue growth of 0.5% to 1.0%.

 

***

DFI Retail Group (the Group) is a leading Asian retailer, driven by its
purpose to 'Sustainably Serve Asia for Generations with Everyday Moments'. At
30 June 2025, the Group and its associates operated over 7,500 outlets, of
which over 5,500 stores were operated by subsidiaries. The Group, together
with its associates, employed over 83,000 people, with over 45,000 employed by
subsidiaries. The Group had total annual revenue in 2024 of US$24.9 billion
and reported revenue of US$8.9 billion.

 

The Group is dedicated to delivering quality, value and service to Asian
consumers through a compelling retail experience supported by an extensive
store network and highly efficient supply chains.

 

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

 

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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