DFI Retail Group

Strategic developments

DFI made good progress in 2024 in implementing its new strategy, with a focus on simplifying the group’s portfolio and reinvesting in the growth of its core businesses, particularly in Health and Beauty and Convenience, with a deleveraged balance sheet. In alignment with this framework, DFI disposed of its Hero Supermarket business in Indonesia in June 2024 and its investment in Yonghui in February 2025.

DFI also focused on increasing operational efficiency in the year, by leveraging the rich data from its yuu Rewards loyalty programme to enhance in-store operations, grow market share and improve margins across businesses, as well as supporting better supplier collaboration.

Business performance

DFI reported underlying net profit of US$201 million, up 30% from the prior year, driven by strong profit growth from subsidiaries (which contributed US$158 million, 42% higher than last year) and resilient performance by associates (which contributed US$43 million, 2% lower than last year). The group reported a non-trading loss of US$445 million, predominantly due to a loss of US$114 million associated with the divestment of Yonghui, a US$231 million impairment of the group’s interest in Robinsons Retail and a US$133 million goodwill impairment of the Macau and Cambodia Food businesses, partially offset by gains from the divestment of Singapore property assets and the group’s share of one-off gains from the Bank of the Philippine Islands (BPI)-Robinsons Bank merger. Despite its non-trading loss, the group is now in a net cash position, following the completion of the Yonghui transaction in February 2025.

Health and beauty

Health and Beauty sales came in slightly higher than the prior year at US$2.5 billion, with like-for-like (LFL) sales remaining broadly stable. Underlying operating profit was US$211 million for the year, slightly below 2023. Hong Kong saw strong LFL sales performance at the start of the year, which then decelerated in the second and third quarters, due to a strong comparable period in 2023 when consumption vouchers were disbursed. Sales momentum improved in the fourth quarter, with Mannings continuing to gain market share. Operating profit for the year increased by 6%, due to gross margin improvement and disciplined cost control, despite a 2% decline in full-year LFL sales.

Guardian in Southeast Asia reported a 5% increase in sales to US$857 million, driven by growth in basket size across all key markets. Indonesia saw particularly strong sales growth, supported by increased mall traffic and effective execution of promotional campaigns. Strong profit growth was reported across most key markets, underpinned by gross margin expansion and operating leverage.

Convenience

Total Convenience LFL sales were 5% lower than the prior year, impacted by a decline in lower-margin cigarette volumes following tax increases in Hong Kong in February 2024. Excluding cigarette sales, overall Convenience LFL sales were up 2%, with continued market share gain across markets. Underlying operating profit was 17% higher at US$102 million.

Within Hong Kong, operating profit grew by 10%, driven by a favourable mix shift towards higher-margin categories, with ready-to-eat (RTE) accounting for 16% of total sales for the full year. 7-Eleven South China and Singapore reported largely stable LFL sales, supported by robust growth in RTE, which accounted for 40% and 23% of sales, respectively. Favourable margin impact from product mix shift and ongoing cost control contributed to meaningful profit growth in both markets.

7-Eleven continued to grow its store network in the South China region, with 103 net openings during the year. The group aims to drive further network expansion, primarily through a capex-light franchise model.

Food

Excluding the impact of the divestment of the Malaysia Food business in 2023 and the Hero Supermarket operation in Indonesia in 2024, revenue for the Food division was 2% lower. Underlying operating profit rose from US$45 million to US$58 million.

Increased outbound travel by Hong Kong residents to the Chinese mainland affected food consumption for the majority of the year, but the situation began to normalise towards the end of 2024, with total retail sales by Hong Kong supermarkets returning to growth in the fourth quarter. Wellcome saw improving sales momentum in the fourth quarter, with full-year LFL sales marginally below those of the prior year despite challenging trading conditions.

Southeast Asia Food sales performance was adversely affected by intense competition and soft consumer sentiment due to cost-of-living pressures. An improved sales mix, effective cost control and optimisation of the store portfolio, however, contributed to the Singapore Food business achieving profitability in the fourth quarter of 2024.

Home furnishings

IKEA reported 11% lower LFL sales in 2024, and operating profit was 13% lower at US$16 million.

IKEA’s business performance has been hampered by reduced customer traffic due to weak property market activity across regions. While IKEA Taiwan demonstrated relative resilience, sales in Hong Kong and Indonesia were affected by intensified competition and basket mix change, as customers bought fewer big-ticket items.

In response to the challenging sales environment, the IKEA team continues to implement strong cost control measures across markets. The IKEA Hong Kong business is pivoting towards a more value-driven omnichannel proposition, to compete with Chinese mainland digital platforms, while IKEA Indonesia remains focused on driving sales through enhancing store commerciality, increasing local sourcing, and adopting a more effective marketing strategy to improve local relevancy.

Associates

The group’s share of Maxim’s underlying net profit was US$66 million in 2024, down from US$79 million in the prior year, largely due to lower mooncake sales and weaker restaurant performance on the Chinese mainland. This was partially offset by robust growth in Southeast Asia, where Maxim’s added 76 stores during the year, mainly in Thailand and Vietnam. Restaurant sales performance in Hong Kong remained resilient, benefitting from a diversified portfolio, despite an increase in outbound travel on weekends and public holidays.

The group’s share of Yonghui’s underlying losses was US$33 million for the year, compared to a US$36 million share of underlying losses in the prior year. Continued macro headwinds and intense competition led to lower LFL sales, but the reduction in losses was underpinned by ongoing cost optimisation, partially offset by a decline in gross margin.

Robinsons Retail’s underlying profit contribution was US$17 million, up 15% year-on-year. Robinsons Retail reported low single-digit growth in LFL and robust growth in operating profit, driven by the Food and Drugstore segments. The reported profit contribution increased by close to 90%, supported by one-off gains following the BPI-Robinsons Bank merger in early 2024.