Dairy Farm International Holdings Stock Earnings Reports

DFI Retail Group reported a solid inflection year in FY2025 with measured recovery across formats and materially stronger earnings quality. Revenue from subsidiaries rose 0.5% (organic), while underlying profit jumped 35% to $270 million, driven by like-for-like recovery (2% in H2), margin improvements, decisive portfolio disposals (Yonghui, Robinsons, Singapore Food) and lower finance costs after moving to net cash (~$538m after a $600m special dividend). Key highlights: 115k daily e-commerce orders (doubling in recent periods), e-commerce penetration gains, strong Health & Beauty performance (wellness, tourists, SEA e-comm), Convenience transitioning away from tobacco towards higher-margin ready-to-eat (RTE), Home Furnishings (IKEA) margin recovery through cost optimization, and Food stabilizing with selective pricing reinvestment. Free cash flow and operating cash flow improved significantly; CapEx was underspent at $149m in 2025 but management commits to $200–$220m p.a. in 2026 (focus: H&B, Convenience, digital/AI, store refurbs). Divestments and capital returns drove a 93% total shareholder return in 2025; ordinary dividend increased to $0.14 (70% payout policy) and management guides FY2026 underlying profit of $270–$300m and ROCE of 11–13% (from 9.4%), with a medium-term ROCE target of 15% by 2028. Management remains focused on retail excellence, digital ecosystem/retail media growth, cost discipline, and deploying capital into higher-return, lower-CapEx formats (franchise-led store growth).