Health & Beauty Drive Dfi’s Sales Growth Amid Global Uncertainties 

Hong Kong-based DFI Retail Group has reported steady sales growth for the first quarter, primarily driven by its health and beauty segment.

The group’s sales, excluding cigarettes, increased 4 per cent year-on-year on a constant currency basis and 3 per cent on a like-for-like (LFL) basis.  

The health and beauty division recorded a 7 per cent LFL sales growth, supported by increased transaction counts and larger basket size. 

In Hong Kong, Mannings’ performance was driven by robust growth in tourist store sales resulting from increased visitor arrivals. In Southeast Asia, Guardian’s sales reflected strong wellness category performance. Notably, Indonesia and Vietnam delivered double-digit growth in LFL sales, underpinned by higher footfall. 

Sales of the convenience division, excluding cigarettes, grew 2 per cent on a LFL basis. Sales at 7-Eleven rose 3 per cent in both Hong Kong and Singapore, while remaining flat in South China.

The food division reported improving performance with Hong Kong sales up 1 per cent. 

The home furnishings division (Ikea) returned to positive growth of 4 per cent. Both Hong Kong and Taiwan delivered mid-single-digit LFL sales growth, driven by Chinese New Year promotions, while Indonesia strengthened its omnichannel proposition with strong online sales growth.

On the bottom line, operating profit from continuing businesses, which exclude impacts from the divestment of Singapore food business and closure of Mannings China, grew 12 per cent. Underlying profit from continuing businesses soared 49 per cent.

Management said the group remained resilient in a dynamic trading environment and rising geopolitical uncertainties, as sourcing improvement and cost optimisation supported price competitiveness and limited the impact of oil price volatility.

DFI reaffirms its full-year guidance of underlying profit in the range of US$270 million to $300 million, supported by an organic revenue growth of approximately 2-3 per cent. 

Earlier this month, DFI’s parent Jardine Matheson Holdings was reportedly in talks with CK Hutchison Holdings to merge their supermarket divisions in Hong Kong.

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