[SINGAPORE] Shares of DFI Retail Group climbed in early trade on Wednesday (Jul 23) morning, after the supermarket and retail store operator posted higher underlying profit for H1.
As at 9.02 am, the counter rose to US$3.56, its highest price in more than three years. This was 12.7 per cent or US$0.40 above its Tuesday closing price of US$3.16, with around 837,000 shares changing hands.
The last time it traded above S$3.56 was in November 2021, ShareInvestor data showed.
By 9.59 am, it eased to US$3.44 – still higher than Tuesday’s closing price by 8.9 per cent or US$0.28 – with around two million shares changing hands.
On Tuesday, DFI announced that its underlying profit grew 38.9 per cent to US$105 million for its first half ended Jun 30, from US$75.6 million in the year-ago period.
This came despite half-year revenue inching down to US$4.39 billion from US$4.4 billion previously.
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The group attributed its profit growth to lower financing costs and an improved showing from its associates, alongside its health and beauty as well as food segments.
DFI had higher contributions from both Maxim’s and Robinsons Retail, as its share of their underlying profits grew to US$14 million and US$18 million, respectively.
Its health and beauty segment’s profit grew 8 per cent on the year to US$109 million, on the back of a 4 per cent sales growth. Similarly, its food division’s bottom line grew 14 per cent on the year to US$24 million, despite a marginal drop in its revenue.
Divestments also boosted its performance.
After accounting for its divestment of Chinese supermarket operator Yonghui Superstores, which was completed in February, underlying profit of the group’s associates rose year on year to US$30 million from US$3 million.
DFI’s divestment of its minority stakes in Yonghui Superstores and Robinsons Retail, completed in H1, yielded total gross proceeds of about US$900 million.
The group’s US$93 million sale of its Singapore food business, comprising Cold Storage and Giant stores, to Malaysian conglomerate Macrovalue is set to be complete in H2 2025.
