Half Year 2024 DFI Retail Group Holdings Ltd Earnings Call Transcript
Key Points
- DFI Retail Group Holdings Ltd (DFIHY) reported an underlying profit of $76 million, showing significant growth compared to the previous year.
- The convenience stores segment posted double-digit operating profit growth, driven by a strong ready-to-eat proposition.
- The company achieved a 40% increase in operating profit, with margins improving to 3.8%, a 100 basis points improvement year-over-year.
- DFI Retail Group Holdings Ltd (DFIHY) reduced its net debt by $330 million, ending at $549 million, demonstrating improved financial health.
- The company is seeing strong growth in its e-commerce segment, with a 40% increase in volume and a pivot to a sustainable model that supports profitability.
- Overall subsidiary sales were down 2% when excluding the impact of the Malaysia food divestment.
- The company faced a decline in cigarette sales due to an unplanned change in cigarette taxes by the Hong Kong government.
- Home furnishings sales decreased by 13% due to weaker consumer confidence and a downturn in the property market.
- Maxim's sales were impacted by increased outbound travel and reduced weekend dining out in Hong Kong.
- The retail environment remains challenging, with ongoing high interest rates and weak consumer confidence affecting performance.
Ladies and gentlemen, thank you for standing by, and welcome to the DFI Retail Group Holdings 2024 half year results briefing conference call. (Operator Instructions)
I'd now like to hand the conference over to your host today, Mr. Scott Price, Group Chief Executive of DFI Retail Group; Mr. Clem Constantine, Group Chief Financial Officer and Property Director of DSI Retail Group. Thank you. Please go ahead, gentlemen.
Good morning, everyone, and welcome to our 2024 half year results presentation. So I'd like to begin this morning by sharing some key highlights from the first half of 2024, we've reported an underlying profit of $76 million, which is a pretty healthy growth versus the same comparable period last year. As we've stated in our press release, a good portion of that profit improvement was in the food and convenience store. But as well reduce losses in young quake our substantial ownership in that China retail business.
Overall subsidiary sales were
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