Dfi Retail Group Holdings Limited · SGX:D01
Dfi Retail — H1 2024 Earnings Presentation
25 slides from Dfi Retail's earnings presentation, Aug 2, 2024
Slide 1: DFI Retail Group 2024 Half-Year Results Presentation
DFI Retail Group 2024 Half-Year Results Presentation 02 August 2024 1
Slide 2: Disclaimer
Disclaimer This document is for information purposes only and is not intended to form the basis of any investment decision. It is not and does not constitute part of any offer, inducement, solicitation or invitation for the sale, purchase, acquisition, disposal or subscription in respect of the Grou
Slide 3: Agenda
Agenda 1. Key Highlights 2. Financial Results 3. Strategy & Business Updates 4. Business Outlook 3
Slide 4: Performance Highlights
Performance Highlights • Underlying profit of US$76m, vs. US$33m in 1H23 • Underlying subsidiaries sales -2% vs. 1H23 excluding Malaysia food divestment impact • Encouraging profit improvement for Food retail • Convenience posted double-digit operating profit growth across all markets • Health & bea
Slide 5: Agenda
Agenda 1. Key Highlights 2. Financial Results 3. Strategy & Business Updates 4. Business Outlook 5
Slide 6: Revenue and Underlying Profit
Revenue and Underlying Profit (US$’ m) 1H 2024 1H 2023 Change Total Revenue Including Associates & JVs 12,643 13,488 -6% Subsidiaries1 4,405 4,574 -4% Subsidiaries Underlying Operating Profit (pre-IFRS16) 121 86 +40% Subsidiaries Underlying Profit 73 40 +82% Share of Associates & JVs’ Underlying Pro
Slide 7: Sales Summary
Sales Summary (US$’ m) 1H 2024 1H 2023 Change LFL1 Food 1,579 1,688 -6% -2% Convenience 1,168 1,182 -1% -3%2 Health and Beauty 1,211 1,210 +0% -1% Home Furnishings 349 400 -13% -11% Key Associates3 Maxim's 1,369 1,371 -0% Yonghui 5,004 5,758 -13% Robinsons Retail 1,744 1,744 +0% 1. Like-for-like sal
Slide 8: Subsidiaries Operating Profit
Subsidiaries Operating Profit (US$’ m) 1H 2024 1H 2023 Change Change % Food 26 14 +12 +90% Convenience 47 27 +20 +73% Health and Beauty 103 100 +3 +3% Home Furnishings 3 14 -11 -77% SG&A (57) (68) +11 -17% Operating Profit (pre-IFRS16) 121 86 +35 +40% IFRS16 Adjustment 47 41 +6 +14% Operating Profit
Slide 9: Cash Flow Statement
Cash Flow Statement (US$’ m) 1H 2024 1H 2023 EBITDAR 580 542 Principal Elements of Lease Payments (312) (318) Interest Elements of Lease Payments (54) (45) ∆Working Capital (52) (16) Net Financing Costs (19) (23) Dividends Received 30 23 Other Operating Cash Flow (17) (12) Operating Cash Flow 155 14
Slide 10: Agenda
Agenda 1. Key Highlights 2. Financial Results 3. Strategy & Business Updates 4. Business Outlook 10
Slide 11: DFI Strategic Framework
DFI Strategic Framework Customer First ✓ Competitive assortment & price Customer ✓ Local relevance First ✓ Strong digital proposition People Led People Led ✓ Embedded values across Group ✓ Empowering decisions close to customer ✓ Servant leadership Shareholder Shareholder Driven Driven ✓ Improving s
Slide 12: Customer First – Key Progress
Customer First – Key Progress Double-digit sales growth in Ready-to-Eat for 7-Eleven Optimised Own Brand range delivering stronger margins Data-driven assortment decisions integrated into category reviews Health and Beauty services expansion strategy developed Accelerating omnichannel presence acros
Slide 13: People Led – Key Progress
People Led – Key Progress Disciplined control of SG&A costs Systematic reset of training and development Empowered leaders to maintain local competitiveness Improving leadership diversity metrics Robust succession plan in place for senior leaders 13
Slide 14: Shareholder Driven – Key Progress
Shareholder Driven – Key Progress Disciplined capex investment to support organic growth Property monetisation program improving capital efficiency Net debt of US$549m at June 2024, vs. US$883m at June 2023 Interim dividend growth of 17% Continued portfolio optimisation 14
Slide 15: Food Update
Food Update • Strong profit growth driven by improved margin mix and disciplined cost control • Continued market share gain in Hong Kong • Singapore Food reset supporting improved profits with minor share loss • Double-digit e-commerce growth with strong profit improvement in Hong Kong & Singapore •
Slide 16: Convenience Update
Convenience Update • LFL sales growth of 4% excluding cigarettes • Profit grew by 73% year-over-year • Double-digit Ready-to-Eat (‘RTE’) growth supporting margin expansion • Fragmented QSR market supports significant opportunity for RTE growth • Profitable e-Commerce business, new digital channels p
Slide 17: Health and Beauty Update
Health and Beauty Update • 1H LFL +1% excluding Hong Kong consumption voucher impact in April 2023 • Strong revenue CAGR of 11% over the past 24 months • Continued market share gains across key South East Asian markets • South East Asia supported by strong Indonesia performance • Health care market
Slide 18: Home Furnishings Update
Home Furnishings Update • Macro-driven softness in home furnishing demand • Significant market share growth potential across key markets • Good growth in e-commerce penetration to 13% of revenue • Strong food proposition with expanding touchpoint network • Well-positioned to capture rebound in heavy
Slide 19: Accelerating O2O Presence
Accelerating O2O Presence Direct distribution channels yuu Platform Third-party platforms Website Marketplace* App/ Mini Program Quick Commerce** Foodpanda Meituan Waimai Eleme Total eCommerce daily order volume surpassed 52,000, up c.40% YoY * For Mannings and Guardian only ** Customers can place o
Slide 20: yuu Rewards and Monetisation
yuu Rewards and Monetisation Customer Vendor Productivity • 5m+ members in Hong Kong • DFI Retail Media launched • Introduced data and analytics into retail assortment • 1.7m members in Singapore • Over 10 successful retail decisions media campaigns in H1 • New insurance partner in HK • Encouraging
Slide 21: DFI Retail Media – Compelling Proposition for Advertisers
DFI Retail Media – Compelling Proposition for Advertisers Media outlet – market entry date • DFI Retail Media launched early 2024 • 5m yuu members • 60+ member segments 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 21
Slide 22: Agenda
Agenda 1. Key Highlights 2. Financial Results 3. Strategy & Business Updates 4. Business Outlook 22
Slide 23: Full-Year 2024 Outlook
Full-Year 2024 Outlook Subsidiaries Revenue Similar trend to 1H24 Underlying Profit US$180-220m Attributable to Shareholders Capex US$200-240m Net Debt Continued reduction Dividend Absolute dividend growth 23
Slide 24: Q&A
Q&A 2024 Half-Year Results Presentation 24
Slide 25: Thank you
Thank you If you have any queries, please email DFIinvestor@DFIretailgroup.com 25