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Business Upturn
23-07-2025
- Business
- Business Upturn
Fnac Darty: Revenue up 2.1% in Q2 2025 and +0.7% in H1 2025 LFL
Ivry-sur-Seine, July 23, 2025, 5:45 p.m. CET REVENUE UP 2.1% IN Q2 2025 AND +0.7% IN H1 2025 LFL1 INCREASE IN GROSS MARGIN RATE (+60 bps) BEYOND EVERYDAY, A NEW STRATEGIC AMBITION 2025 OPERATING MARGIN EXPECTED TO GROW BY +15 BPS2 H1 2025 revenue of €4,480 million , up +0.7% LFL 1 compared with H1 2024 , up +0.7% LFL compared with H1 2024 Growth in online business of almost 8% Gross margin rate of 28.9% , up 60 bps compared with H1 2024 comparable 2 , up 60 bps compared with H1 2024 comparable Current operating income of -€56 million : slight growth in EBITDA, increase in impairment, depreciation and amortization : increase in impairment, depreciation and amortization Strengthening of the Group's financial structure with an extended maturity profile Beyond everyday, a strategic plan to accelerate the rollout in the European market by 2030 Enrique Martinez, Chief Executive Officer of Fnac Darty, declared: 'The first half saw the launch of our new strategic plan, Beyond everyday. This sets out our ambitions in terms of circularity, growth in services, reinvented customer experience, expansion and European consolidation. At the same time, the integration of Unieuro continued successfully. We had a very dynamic second quarter, driven by steady growth in e-commerce and services, the launch of a new gaming console and excellent reactivity to the significant demand linked to the June heatwaves. We are confident in our success for the second half of the year and in the performance of our key commercial events. ' H1 2025 KEY FIGURES (€ million) H1 2024 reported H1 2024 comparable2 H1 2025 Revenue 3,390 4,489 4,480 Change vs H1 2024 on a reported basis +32.2% LFL change 1 +0.7% Gross margin 1,050 1,271 1,295 As a % of revenue 31.0% 28.3% 28.9% Current EBITDA3 146 187 189 Current operating income (36) (49) (56) Net income from continuing operations, Group share (75) (95) (86) Free cash-flow from operations, excluding IFRS 16 (673) (736) (878) The transformative acquisition of Unieuro gives Fnac Darty a new dimension. Since the beginning of 2025, the Group reports its financial information based on the following two geographical areas: France and Rest of Europe (including Italy, Belgium, Portugal, Spain and Switzerland). To ensure better comparability: The historical data have been restated and are included in the appendix to this press release. The data for the first half of 2024 in this press release are presented on a reported basis and comparable basis i.e. including Unieuro and the deconsolidation of the ticketing business. Group performance is historically affected by the seasonal nature of the business, for which the main part of the income and of the free cash-flow from operations is recorded during the second half of the year. In Q2 2025, Group revenue amounted to €2,166 million, up +35.7% on a reported basis and +2.1% on a like-for-like basis4 compared with Q2 2024. This solid performance is due to the excellent momentum in all regions (LFL1 growth of +2.5% in France and +1.5% in the Rest of Europe). The business was mainly driven by gaming, with the successful launch of a new console and the very positive impact of the weather on sales of domestic appliances, demonstrating the Group's ability to gain market share and respond effectively to customer expectations. In H1 2025, revenue was €4,480 million, up by +32.2% compared with H1 2024 on a reported basis and by +0.7% on a like-for-like basis1. In H1 2025, the gross margin rate was 28.9% (+60 bps compared with H1 2024 on a comparable basis2, and +70 bps excluding the dilutive effect of the franchise), primarily due to the growing contribution of the services businesses. Operating costs totaled €1,351 million in H1 2025, compared with €1,320 million in H1 2024 on a comparable basis2. The change is largely due to the additional costs linked to the ramp-up of the services businesses, rent indexation and an increase in depreciation and amortization, which have only been partially covered by the performance plans rolled out across the Group's divisions. Current EBITDA amounted to €189 million and grew by almost 1% compared with H1 2024 on a comparable basis2. After considering impairment, depreciation and amortization, and in particular €163 million for the application of IFRS 16, current operating income amounted to -€56 million in H1 2025 compared with -€49 million in H1 2024 on a comparable basis2. Changes by distribution channel In H1 2025, online sales rose sharply (+8% compared with H1 2024 comparable2). These account for 21% of the Group's total sales, mainly driven by the momentum of the marketplace business (direct and reverse). Omnichannel sales (Click & Collect) remained stable compared with the first half of 2024 on a comparable basis2, accounting for nearly 50% of the Group's online sales. In-store sales slowed slightly. These results once again confirmed the relevance of the omnichannel strategy adopted by Fnac Darty. Changes by product category Services continued to grow, with double-digit growth in most regions. Diversification also saw double-digit growth in games & toys and stationery. The bedding business, launched at the beginning of the year, got off to a promising start and is experiencing a rapid rollout. Domestic appliances grew by almost 2% compared with H1 2024 on a comparable basis2. Small domestic appliances continued to grow, driven by innovations (beauty tech and floor care). Sales of large domestic appliances were driven by favorable weather conditions in the second quarter and early signs of a recovery in the real estate market, accompanied by a good dynamic in fitted kitchens. Editorial products benefited from the excellent performance of the launch of the Switch 2 console in early June 2025. The performance of books was mainly driven by thrillers, replacing romance, which is returning to normal levels. Lastly, consumer electronics recorded a decline, impacted by a PC market which is still contracting. The end of Windows 10 support in the fourth quarter is expected to drive renewals. Tablets, smart glasses and photography saw strong growth. Sales of new phones declined, while sales of refurbished products rose sharply. Television was impacted by a high basis of comparison due to the Euro 2024 soccer championship. Changes by geographical region In H1 2025, France posted a slight increase in its LFL revenue5 compared with H1 2024 on a comparable basis6. In France, the Group outperformed the market in H1 2025 by nearly 2 points, according to figures published by the Banque de France7. The scope effect mainly reflects the permanent closure of the Champs-Elysées store. Current operating income amounted to -€45.3 million in H1 2025, compared with -€33.9 million in H1 2024 on a comparable basis2. In H1 2025, Rest of Europe posted an increase in its LFL1 revenue of +0.9% compared with H1 2024: In Italy, LFL 1 revenue remained stable, driven by online sales and services which offset the fall in sales of consumer electronics (telephony, television and PC). revenue remained stable, driven by online sales and services which offset the fall in sales of consumer electronics (telephony, television and PC). Portugal posted LFL 1 growth of +4.6%, boosted by strong online sales. growth of +4.6%, boosted by strong online sales. Spain grew by +7.4% LFL 1 , driven by an uptick in household spending. The scope effect reflects the temporary closure of stores for refurbishment and renovation. , driven by an uptick in household spending. The scope effect reflects the temporary closure of stores for refurbishment and renovation. In H1 2025, Belgium and Luxembourg recorded a LFL 1 decline in sales of -2.0%, mainly due to strong competition. decline in sales of -2.0%, mainly due to strong competition. In Switzerland, LFL1 revenue increased by +1.8%, driven by an excellent level of online sales. Current operating income for Rest of Europe amounted to -€10.6 million in H1 2025, versus -€15.6 million in H1 2024 on a comparable basis2. Other income statement items Net income Group share from continuing operations amounted to -€86 million in H1 2025, versus -€95 million in H1 2024 on a comparable basis2. It mainly includes: non-current income of -€11 million. As a reminder, non-current income for H1 2024 on a comparable basis 2 was -€28 million and mainly included restructuring costs for the Nature & Découvertes business and the fair value adjustments of various IT projects. of -€11 million. As a reminder, non-current income for H1 2024 on a comparable basis was -€28 million and mainly included restructuring costs for the Nature & Découvertes business and the fair value adjustments of various IT projects. Net financial income of -€57 million, versus -€44 million in H1 2024 on a comparable basis 2 . The change is mainly due to: the increase in the cost of net debt (-€26 million compared with -€18 million in H1 2024) due to the Group's new financing terms; and the increase in IFRS 16 expenses which amounted to -€31 million compared with -€29 million in H1 2024. of -€57 million, versus -€44 million in H1 2024 on a comparable basis . The change is mainly due to: tax income of €34 million, up by €8 million compared with H1 2024, on a comparable basis2. In France, the 2025 Finance Act introduced a temporary exceptional contribution on corporate income tax payable by very large companies (art. 48). Fnac Darty is subject to this contribution. In H1 2025, an amount of €7.6 million was recorded as an expense for this purpose. The share of non-controlled interests in the consolidated net income was -€3.2 million in H1 2025, compared with +3.2 million euros in H1 2024. This change is driven by Ruby Equity Investments' interests in the joint investment in Unieuro since November 26, 2024, as well as the loss of control of the Ticketing business since November 29, 2024. Financial structure Free cash-flow from operations excluding IFRS 16 stood at -€878 million compared with -€736 million at the end of June 2024, in line with expectations. The increase is mainly due to the change in the WCR of €29 million and an increase in investment of €22 million, particularly in Italy with the opening of a new warehouse. As a reminder, asset disposals were made in the first half of 2024 for a total of €93 million (notably the sale and leaseback of a warehouse in France). The Group's net financial debt excluding IFRS 16 totaled €779 million on June 30, 2025. The change in net financial debt between December 31 and June 30 was due to the seasonal nature of business, with net debt on December 31 being structurally lower due to the high volume of business recorded at the end of the year. The Group recorded a net cash position of €359 million on June 30, 2025. In addition, the Group benefits from undrawn revolving credit facility and Delayed Drawn Term Loan (DDTL) of €600 million, maturing in March 2030 (with two options to extend, in March 2031 and March 2032). This strong liquidity position supports the Group's confidence in strategically allocating its resources in the most opportune way (shareholder return, M&A, debt reduction, etc.) while remaining attentive to its leverage ratio. Furthermore, the Group is rated by the rating agencies S&P Global, Scope Ratings and Fitch Ratings, which assigned ratings of BB+, BBB and BB+ respectively, with a 'stable' outlook. Lastly, Fnac Darty paid a dividend of €1.00 per share. It represents a 40% payout ratio, in accordance with the shareholder return policy implemented by the Group. It was paid on July 4, 2025, for an amount of €29.4 million. UNIEURO INTEGRATION The integration of Unieuro is ongoing, and the French and Italian teams are working together to roll out the strategic initiatives of the Beyond everyday plan. The target is confirmed of at least €20 million synergies by the end of 2026. In the first half of the year, Unieuro's logistics capability was strengthened with the opening of a new 50,000 m2 logistics hub in Colleferro, near Rome. The new hub will supplement existing facilities: Piacenza for northern Italy, Carini (Palermo) for Sicily and the 33 home delivery centers for large domestic appliances. Unieuro will thus be able to ensure a substantial improvement in the level of service in those regions, while reducing logistics costs. NEW STRATEGIC AMBITION BY 2030 With the Everyday plan, Fnac Darty has transformed itself by achieving extensive development of the subscription-based service model, by making sustainability a core part of its vision, by devising and launching new levers for growth, and, finally, by expanding its European footprint with the integration of Unieuro. Fnac Darty is building on this profitable growth for the next stage of its development with one ambition: to consolidate its omnichannel and service-based model on a European scale. With Beyond everyday, published on June 11, 2025, Fnac Darty is continuing to innovate in the interests of its purpose, which is the cornerstone of all its initiatives: to enable its customers to make educated choices and guide them toward more sustainable consumption. To that end, the Group will implement three complementary strategic pillars: Becoming the benchmark player in high-value-added products and accelerating the rollout of subscription-based home services with circularity at the core : Fnac Darty aims to drive growth toward premium, innovative and sustainable products by extending their life spans through services, while maintaining its carbon footprint reduction commitments. : Fnac Darty aims to drive growth toward premium, innovative and sustainable products by extending their life spans through services, while maintaining its carbon footprint reduction commitments. Setting market standards for customer experience at all touchpoints: Fnac Darty aims to set new standards in terms of sales experience by seamlessly integrating the physical and digital worlds. The objective is to provide a seamless and personalized experience that is consistent across all customer touchpoints to boost retention and loyalty. The Group also aims to expand its customer base and consolidate its positions at the European level. Fnac Darty aims to set new standards in terms of sales experience by seamlessly integrating the physical and digital worlds. The objective is to provide a seamless and personalized experience that is consistent across all customer touchpoints to boost retention and loyalty. The Group also aims to expand its customer base and consolidate its positions at the European level. Applying the Group's expertise to the benefit of partners and in all geographical locations: Fnac Darty wants to accelerate the sale of services to businesses by leveraging on its unique marketplace and logistics expertise through customer relationship management solutions, while also harnessing its experience and the strength of its physical and digital network in retail media. Fnac Darty wants to monetize its expertise and its assets, which are among the best on the market, by putting them at the service of third-party players. In line with this vision, and assuming that no major changes occur as regards the macroeconomic, geopolitical and fiscal environment, Fnac Darty has announced financial targets for the 2025–2030 period: The operating margin is expected to increase to at least 3% by 2030. is expected to increase to at least 3% by 2030. The Group expects to generate cumulative operational free cash-flow8 of at least €1.2 billion over the period. With a level of debt that will remain under control in the long term and target leverage of 1.5x9 in the medium term, Fnac Darty will pursue a capital allocation strategy that maximizes shareholder value. The Group will give priority to financing profitable organic growth, and to paying a dividend with a payout ratio of at least 40% and a minimum dividend of €1 per share per year. The Group may also carry out M&A transactions or pay a special dividend if results allow. The ambitious environmental and social objectives of the plan Everyday remain in place: 50% reduction in direct CO₂ emissions (scopes 1 and 2) by 2030, compared with 2019. Proportion of women in the leadership group (Top 200) of over 40% by 2030. With Beyond everyday, the Group is also expressing its commitment to value-sharing and wants its employee shareholders to represent 5% of its equity. IMPLEMENTING A SHARE BUYBACK PROGRAM At its meeting on May 28, 2025, the Board of Directors resolved to implement the share buyback program adopted by the General Meeting on the same day to service its performance share plans (LTI). Fnac Darty will entrust an investment service provider (ISP) with one or more mandates to acquire around 600,000 securities. An initial mandate for a total of €5 million was entrusted to Natixis on June 11, 2025. 151,304 shares were repurchased between June 11 and July 23, 2025. A description of the share buyback program can be found in the 2024 Universal Registration Document (Chapter 6.2.3.2), available on the Group's website. 2025 OUTLOOK The comparable operating margin rate (after considering the integration of Unieuro and the deconsolidation of the Ticketing businesses) is expected to increase by 15 bps, to reach 2.0% on 31 December 2025 (compared to 1.8% in 2024). This outlook updates the one communicated in the 2024 full-year results, which only concerned the Fnac Darty scope. ********* PRESENTATION OF 2025 HALF-YEAR RESULTS Enrique Martinez, Chief Executive Officer and Jean-Brieuc Le Tinier, Group Chief Financial Officer, will host a virtual presentation of the results in French, with simultaneous interpretation into English Wednesday, July 23, 2025, at 6:00 p.m. (Central European Time) 5:00 p.m. (UK) – 12:00 p.m. (East Coast USA) To join the conference call, dial +33 1 70 91 87 04 The presentation will be streamed live at this link. You can listen to a recording of the presentation at any time, in either French or English, via the website In addition, Fnac Darty is also publishing its half-year report on the same date on its website, in the Investors section. It will be available on the Group website and on the AMF website. FINANCIAL CALENDAR October 22, 2025 (after market close): Revenue for the third quarter of 2025 CONTACTS ANALYSTS/INVESTORS Domitille Vielle – Head of Investor Relations – [email protected] – +33 (0)6 03 86 05 02 Laura Parisot – Investor Relations Manager – [email protected] – +33 (0)6 64 74 27 18 PRESS Bénédicte Debusschere – Head of Media Relations and Influence – [email protected] – +33 (0)6 48 56 70 71 APPENDIX The half-year financial statements approved by the Board of Directors on July 23, 2025, have been subject to a limited audit conducted by the statutory auditors. The following tables contain individually rounded data. The arithmetical calculations based on rounded data may present some differences with the aggregates or subtotals reported. REVENUE in €m Q2 2024 on a reported basis Q2 2024 comparable10 Q2 2025 on a reported basis Change compared with Q2 2024 Reported LFL11 France 1,265.3 1,255.9 1,278.8 +1.1% +2.5% Rest of Europe 331.1 882.7 887.2 +168.0% +1.5% o/w Italy – 551.6 547.2 n/a -0.7% o/w Belgium 126.5 126.5 126.7 +0.2% +0.1% o/w Portugal 103.0 103.0 109.7 +6.5% +8.3% o/w Spain 61.7 61.7 61.2 -0.8% +14.3% o/w Switzerland 39.9 39.9 42.4 +6.3% +4.5% Group 1,596.4 2,138.6 2,166.0 +35.7% +2.1% in €m H1 2024 on a reported basis H1 2024 comparable1 H1 2025 on a reported basis Change compared with H1 2024 Reported LFL2 France 2,673.6 2,652.4 2,650.5 -0.9% +0.5% Rest of Europe 716.1 1,836.1 1,829.3 +155.5% +0.9% o/w Italy – 1,120.1 1,120.4 n/a +0.3% o/w Belgium 285.4 285.4 279.7 -2.0% -2.0% o/w Portugal 208.5 208.5 214.1 +2.7% +4.6% o/w Spain 135.1 135.1 128.3 -5.1% +7.4% o/w Switzerland 87.0 87.0 86.8 -0.2% +1.8% Group 3,389.7 4,488.5 4,479.8 +32.2% +0.7% 2024 COMPARABLE1 Q1 Q2 H1 Q3 9M Q4 H2 FY in €m France 1,396.5 1,255.9 2,652.4 1,451.5 4,103.8 2,139.0 3,590.4 6,242.8 Rest of Europe 953.5 882.7 1,836.1 1,014.3 2,850.5 1,402.8 2,417.2 4,253.1 o/w Italy 568.5 551.6 1,120.1 627.4 1,747.5 860.2 1,487.6 2,607.6 o/w Belgium 158.9 126.5 285.4 150.1 435.5 184.2 334.3 619.7 o/w Portugal 105.5 103 208.5 119.4 327.9 179.5 298.9 507.3 o/w Spain 73.4 61.7 135.1 72.9 208.0 104.0 176.9 312.0 o/w Switzerland 47.2 39.9 87.0 44.6 131.6 74.9 119.5 206.5 REVENUE COMPARABLE1 2,350.0 2,138.6 4,488.5 2,465.8 6,954.3 3,541.8 6,007.6 10,495.9 CURRENT OPERATING INCOME in €m H1 2024 reported As a % of revenue H1 2024 comparable12 As a % of revenue H1 2025 As a % of revenue France (25.8) (1.0)% (33.8) (1.3)% (45.3) (1.7)% Rest of Europe (10.3) (1.4)% (15.6) (0.8)% (10.6) (0.6)% Group (36.1) (1.1)% (49.4) (1.1)% (55.9) (1.2)% 2024 COMPARABLE1 H1 as a % of revenue H2 as a % of revenue FY as a % of revenue in €m France (33.8) (1.3)% 172.5 4.8% 138.7 2.2% Rest of Europe (15.6) (0.8)% 69.7 2.9% 54.0 1.3% Current operating income COMPARABLE1 (49.4) (1.1)% 242.1 4.0% 192.7 1.8% 2024 KEY FIGURES COMPARABLE1 in €m H1 H2 FY Revenue 4,489 6,008 10,496 Gross margin 1,271 1, 633 2,934 As a % of revenue 28.3% 21.2% 28.0% Current EBITDA13 187 485 672 OPEX 1,320 1,423 2,743 Current operating income (49) 242 193 Current operating margin (1.1)% 4.0% 1.8% Net income from continuing operations, Group share (95) 113 15 Free cash-flow from operations excluding IFRS 16 (736) 941 205 SUMMARY INCOME STATEMENT Period ended June 30 (€ million) 2024 reported 2025 reported Change Revenue 3,390 4,480 +32.2% Gross margin 1,050 1,295 As a % of revenue 31.0% 28.9% Total costs (1,086) (1,351) As a % of revenue 32.0% 30.2% Current operating income (36) (56) (20) Products and non-current operating income and expense (27) (11) Operating income (63) (67) Net financial expense (37) (57) Income tax 27 34 Net income from continuing operations for the period (72) (89) Net income from continuing operations for the period, Group share (75) (86) (11) Net income from discontinued operations 2 0 Consolidated net income, Group share (73) (86) Current EBITDA 14 146 189 +43 As a % of revenue 4.3% 4.2% Current EBITDA excluding IFRS 16 21 5 (16) FREE CASH-FLOW FROM OPERATIONS Period ended June 30 (€ million) 2024 reported 2025 reported Cash flow before tax, dividends and interest 140 185 IFRS 16 impact (140) (185) Cash flow before tax, dividends and interest, excluding IFRS 16 0 0 Change in working capital requirement, excluding IFRS 16 (696) (776) Income tax paid (15) (14) Net cash flows from operating activities, excluding IFRS 16 (711) (791) Net cash flows from operating investing activities 38 (87) Free cash-flow from operations, excluding IFRS 16 (673) (878) BALANCE SHEET Assets (€m) At December 31, 2024 At June 30, 2025 Goodwill 2,009 1,952 Intangible assets 615 778 Property, plant and equipment 531 517 Rights of use relating to lease agreements 1,532 1,491 Investments in associates 50 47 Non-current financial assets 31 31 Deferred tax assets 91 80 Other non-current assets 23 20 Non-current assets 4,882 4,914 Inventories 1,659 1,660 Trade receivables 246 183 Tax receivables due 13 61 Other current financial assets 30 20 Other current assets 597 534 Cash and cash equivalents 1,062 359 Current assets 3,606 2,816 Assets held for sale – – Total assets 8,488 7,731 Liabilities (€m) At December 31, 2024 At June 30, 2025 Share capital 30 30 Equity-related reserves 1,040 1,042 Translation reserves (6) (4) Other reserves 546 437 Shareholders' equity, Group share 1,610 1,505 Shareholders' equity – Share attributable to non-controlling interests 127 124 Shareholders' equity 1,737 1,628 Long-term borrowings and financial debt 791 944 Long-term leasing debt 1,295 1,272 Non-current provisions 12 58 Provisions for pensions and other equivalent benefits 177 178 Other non-current liabilities 255 234 Deferred tax liabilities 135 178 Non-current liabilities 2,665 2,864 Short-term borrowings and financial debt 46 194 Short-term leasing debt 320 315 Other current financial liabilities 18 25 Trade payables 2,658 1,969 Provisions 38 34 Tax liabilities payable 10 – Other current liabilities 996 702 Current liabilities 4,086 3,239 Payables relating to assets held for sale – – Total liabilities 8,488 7,731 STORE NETWORK Dec. 31, 2024 Opening Closure June 30, 2025 France1 828 2 17 813 Fnac (integrated) 91 0 1 90 Fnac (franchised) 142 0 7 135 Darty (integrated) 218 1 0 219 Darty (franchised) 273 1 9 265 Fnac/Darty France 1 0 0 1 Nature & Découvertes 2 103 0 0 103 Italy 522 6 11 517 Unieuro (integrated) 268 4 2 270 Unieuro (affiliated) 254 2 9 247 Belgium 84 1 1 84 Fnac 3 14 0 0 14 Darty (Vanden Borre) 70 1 1 70 Portugal 50 0 0 50 Fnac (integrated) 36 0 0 36 Fnac (franchised) 4 0 0 4 MediaMarkt Portugal 10 0 0 10 Spain 35 0 1 34 Fnac (integrated) 32 0 1 31 Fnac (franchised) 3 0 0 3 Switzerland4 8 0 0 8 Fnac (integrated) 8 0 0 8 Fnac Darty Group 1,527 8 29 1,506 Fnac 330 0 9 321 Darty/Vanden Borre 561 2 9 554 Fnac/Darty 1 0 0 1 Unieuro 522 6 11 517 MediaMarkt 10 0 0 10 Nature & Découvertes 103 0 0 103 of which franchised/affiliated stores 691 3 24 670 1 Including 14 Fnac stores abroad: 3 in Qatar, 3 in Tunisia, 2 in Senegal, 2 in Ivory Coast, 2 in Saudi Arabia, 1 in Congo and 1 in Cameroon, and 3 Darty stores abroad in Tunisia; and including 18 stores in the French overseas territories. Excluding 13 Fnac shop-in-shops opened in Manor stores. 2 including Nature & Découvertes subsidiaries managed from France: 4 stores in Belgium, 1 store in Luxembourg, 2 franchises in Switzerland, 1 franchise in Portugal, 2 franchises in Spain and 5 franchises in the French overseas territories. 3 Including one store in Luxembourg, which is managed from Belgium. 4 Excluding 14 Fnac shop-in-shops opened in Manor stores. BEYOND EVERYDAY – KEY FIGURES 2030 Nearly 4 million subscribers for all services combined by 2030 (vs 1.9 million in February 2025). Contribution of services to the Group's gross margin up from 25% to 30%, and contribution of subscription-based services to B2C gross margin increased from >60% to >80%. Cumulative free cash-flow 15 for 2025–2030 of >€1.2 bn. for 2025–2030 of >€1.2 bn. Operating margin >3% by 2030 (+100 basis points vs 2024 comparable). Average CapEx for 2025–2030 of approximately €200 million per year (vs ~€160 million in 2024 comparable). Improved shareholders' return policy: payout rate up from 30% to 40%, dividend-per-share floor of €1 per year. Target financial debt ratio kept at 1.5x 16 . . 50% reduction in direct CO₂ emissions (scopes 1 and 2) by 2030, compared with 2019. Feminization rate of the leadership group (Top 200) of over 40% by 2030. Employee shareholding: 5% of capital by 2030. DEFINITIONS OF ALTERNATIVE PERFORMANCE INDICATORS Indicator name Indicator definition Other non-current operating income and expense 'Other non-current operating income and expense' reflects the unusual and material items for the consolidated entity that could disrupt tracking of the Group's economic performance and that are excluded from the current operating income: restructuring costs and costs relating to staff adjustment measures; impairment on capitalized assets identified primarily in the context of impairment tests on cash-generating units (CGU) and goodwill; gains or losses linked to changes in the scope of consolidation (acquisition or disposal); and major disputes that do not arise from the Group's operating activities. Free cash-flow from operations excluding IFRS 16 Free cash flow from operations including impacts relating to rents within the scope of IFRS 16 Free cash-flow from operations This financial indicator measures the net cash flows linked to operating activities and the net cash flows from operational investments (defined as acquisitions and disposals of property, plant and equipment and intangible assets, and the change in trade payables for non-current assets). The application of IFRS 16 significantly changes the Group's free cash-flow from operations. Revenue The Group's 'real' revenue (or income from ordinary activities) corresponds to its reported revenue. The Group uses the notions of change in revenue detailed below. Current EBITDA Current operating income before depreciation, amortization and provisions on fixed operating assets that are recognized as recurring operating income. Current EBITDA is not an indicator stipulated by IFRS and does not appear in the Group consolidated financial statements. Current EBITDA has no standard definition and, therefore, the definition used by the Group may not match the definition of this term used by other companies. The application of IFRS 16 significantly changes the Group's current EBITDA. Current EBITDA excl. IFRS 16 Current EBITDA including rental expenses within the scope of IFRS 16. Net financial debt Net financial debt consists of gross debt including accrued interest not yet due as defined by the French National Accounting Council's recommendation No. 2013-03 on November 7, 2013, minus gross cash and cash equivalents. The application of IFRS 16 significantly changes the Group's net financial debt. Net financial debt excl. IFRS 16 Net financial debt less leasing debt Net financial income excl. IFRS 16 Financial result minus financial interest on leasing debt Operating income The total operating income of Fnac Darty includes all the income and costs directly related to Group operations, whether the income and expense are recurrent or whether they result from one-off operations or decisions. Current operating income Fnac Darty uses current operating income as the main management balance. This is defined as the difference between the total operating income and the 'Other non-current operating income and expense.' Current operating income is an intermediate line item intended to facilitate the understanding of the entity's operating performance that can be used as a way to estimate recurring performance. This indicator is presented in a manner that is consistent and stable over the long term in order to ensure the continuity and relevance of financial information. Net cash Net cash consists of gross cash and cash equivalents, minus gross debt including accrued interest not yet due as defined by the French National Accounting Council's recommendation No. 2013-03 on November 7, 2013. The application of IFRS 16 significantly changes the Group's net cash. Net cash excl. IFRS 16 Net cash excluding leasing debt Change in revenue at a constant exchange rate Change in revenue at a constant exchange rate means that the impact of changes in exchange rates has been excluded. The exchange rate impact is eliminated by recalculating sales for period N-1 using the exchange rates used for period N. Change in revenue on a like-for-like basis Change in revenue on a like-for-like basis means that the impact of changes in the scope of consolidation is corrected so as to exclude the modifications (acquisition, disposal of subsidiary). Revenue of subsidiaries acquired or sold since January 1 of period N-1 are, therefore, excluded when calculating the change (in the event of a significant variation at Group level). Change in revenue on a same-store basis The change in revenue on a same-store basis means that the impact of directly owned store openings and closures is excluded. Revenue of stores opened or closed since January 1 of period N-1 is excluded from calculations of the change. THE APPLICATION OF THE IFRS 16 STANDARD On January 13, 2016, the IASB published IFRS 16 on 'Leases.' IFRS 16 replaces IAS 17 and its interpretations. This standard, which is mandatory for annual periods beginning on or after January 1, 2019, requires the recognition of an asset (the right of use) and a liability (leasing debt) on the basis of discounted in-substance fixed lease payments. The Group has applied IFRS 16 since January 1, 2019. In order to ensure the transition between IAS 17 and IFRS 16, all lease and service agreements falling within the scope of 16 have been analyzed. To monitor its financial performance, the Group publishes indicators that exclude the application of IFRS 16. These indicators are current EBITDA excluding IFRS 16, free cash-flow from operations excluding IFRS 16, and net financial debt excluding IFRS 16. With the application of IFRS 16 IFRS 16 restatement Without application of IFRS 16 Current EBITDA Rents within the scope of IFRS 16 Current EBITDA excl. IFRS 16 Current operating income before net depreciation, amortization and provisions on fixed operational assets recognized as current operating income Current EBITDA including rental expenses within the scope of IFRS 16 Free cash-flow from operations Disbursement of rents within the scope of IFRS 16 Free cash-flow from operations excluding IFRS 16 Net cash-flow from operating activities, less net operating investments Free cash-flow from operations, including cash impacts relating to rents within the scope of application of IFRS 16 Net financial debt Leasing debt Net financial debt excl. IFRS 16 Gross financial debt less gross cash and cash equivalents Net financial debt less leasing debt Net financial income Financial interest on leasing debt Net financial income excluding financial interest on leasing debt 1 Like-for-like basis – LFL: excludes the effect of changes in foreign exchange rates, changes in scope, and store openings and closures. Including Unieuro and the deconsolidation of the ticketing business.2 Comparable: includes the integration of Unieuro and the deconsolidation of the ticketing business.3 Current EBITDA is defined as current operating income before net depreciation, amortization and provisions on fixed operational assets recognized as current operating income4 Like-for-like basis – LFL: excludes the effect of changes in foreign exchange rates, changes in scope, and store openings and closures. Including Unieuro and the deconsolidation of the ticketing business.2 Comparable: includes the integration of Unieuro and the deconsolidation of the ticketing business. 5 Like-for-like basis – LFL: excludes the effect of changes in foreign exchange rates, changes in scope, and store openings and closures. Including Unieuro and the deconsolidation of the ticketing business. 6 Comparable: includes the integration of Unieuro and the deconsolidation of the ticketing business. 3 Market data published by the Banque de France on July 22, 2025. 8 Free cash-flow from operations excluding IFRS 16.9 Net debt to EBITDA (IFRS 16) at the end of December.10 2024 comparable data: they include the integration of Unieuro and the deconsolidation of the ticketing business.11 Like-for-like basis – LFL: excludes the effect of changes in foreign exchange rates, changes in scope, and store openings and closures. Including Unieuro and the deconsolidation of the ticketing business.12 2024 comparable data: they include the integration of Unieuro and the deconsolidation of the ticketing business. 13 Current EBITDA is defined as current operating income before net depreciation, amortization and provisions on fixed operational assets recognized as current operating income
The Sun
23-07-2025
- Business
- The Sun
DFI Retail Group Holdings Limited Half-Year Results For The Six Months Ended 30 June 2025 And Announcement Of Special Dividend
Highlights -39% underlying earnings growth -Increased contributions from associates, Health & Beauty and Food -Health & Beauty delivered strong like-for-like (LFL) sales growth of 4% -Portfolio simplification continues with the announced divestment of Singapore Food business and sale of minority stake in Robinsons Retail -Proceeds from Yonghui and Robinsons Retail divestments strengthen balance sheet to a net cash position of US$442 million -Raised full-year underlying profit guidance to be between US$250 million and US$270 million -Declared special dividend of US¢44.30 per share in addition to interim dividend of US¢3.50 HONG KONG SAR - Media OutReach Newswire - 22 July 2025 - 'We are pleased to report strong first-half underlying profit growth to US$105 million, supported by improved Health & Beauty and Food profitability, higher contribution from associates, and a stabilising revenue growth trend. Our ongoing portfolio evolution enables us to prioritise capital on high-margin businesses and growth initiatives, while providing strategic flexibility for inorganic opportunities. As a result of our strategic progress, we are pleased to announce a special dividend of US¢44.30 per share – the first in 18 years – returning a total of US$647 million to shareholders, including the regular interim dividend. These decisions underscore our confidence in DFI's long-term growth strategy and commitment to shareholder returns.' Scott Price Group Chief Executive OVERVIEW The Group continued to demonstrate strong business resilience by effectively executing its strategic and margin expansion initiatives. Despite the continued shift towards value by consumers, LFL subsidiary sales for the first half of 2025 remained largely stable compared to the same period last year, excluding the impact of a significant cigarette tax increase in Hong Kong and the divestment of Hero Supermarket business in Indonesia in 2024. LFL subsidiary sales have demonstrated a steady recovery with a return to moderate growth in the second quarter of 2025. Significant progress has been made in the Group's strategic pivot from a portfolio investor to an operating company centred on five key deliverables: Retail excellence: Delivering a best-in-class customer proposition Customer access: Strategically expanding store network Omnichannel and data ecosystem: Powering e-commerce and retail media with data-driven insights Lean and agile operations: Streamlining business for more efficient decision making Evolving portfolio: Prioritising capital returns and shareholder value The Group continues to reinvest in pricing to deliver a stronger customer value proposition while resetting our sourcing strategy to expand gross profit. Reduction in financing costs and higher underlying profit from associates contributed to a 39% increase in underlying profit attributable to shareholders for the first half of 2025. The Group continues to evolve its portfolio to enhance operational focus and enable more efficient capital allocation, supporting subsidiary business growth both organically and inorganically should shareholder accretive opportunities arise. During the reporting period, the Group completed the divestment of minority stakes in both Yonghui and Robinsons Retail, generating total gross proceeds of approximately US$900 million. Additionally, the Group announced the divestment of its Singapore Food business for approximately US$93 million in cash consideration. As a result of this strategic progress, the Board has approved a special dividend of US¢44.30 per share, equivalent to US$600 million in total payment. Concurrently, the Group declared an interim dividend of US¢3.50 per share, in line with the prior comparable period. These decisions underscore the Group's confidence in its long-term growth strategy and its commitment to creating value for its shareholders. OPERATING PERFORMANCE Overall Total revenue from subsidiaries for the first half of 2025 was US$4.4 billion, up 0.3% year-on-year on a LFL basis, excluding the impact of a significant cigarette tax increase in Hong Kong and the divestment of the Hero Supermarket business in Indonesia in 2024. Strong sales growth in the Health & Beauty division was offset by lower contributions from other segments. Total revenue, which includes 100% of associates and joint ventures, was US$8.2 billion. Excluding the impact of the minority stake divestment in Yonghui completed at the end of February 2025, as well as the additional two months of sales contribution from Robinsons Retail following the stake disposal at the end of May 2025, total revenue increased by approximately 1%. Total underlying profit attributable to shareholders for the first half of 2025 reached US$105 million, representing a year-on-year increase of 39%, primarily driven by improved performance in associates. Underlying profit from subsidiaries was US$75 million, reflecting a 3% year-on-year increase. Strong performance in the Health & Beauty and Food divisions was partially offset by lower profitability in Convenience as a result of the cigarette tax impact, and higher selling, general and administrative expenses[1] primarily due to a one-time reversal of long-term incentive accruals in 2024 related to executive departures. After accounting for the divestment of Yonghui, underlying profit from associates was US$30 million, an improvement from US$3 million from the prior comparable period, supported by higher contributions from both Maxim's and Robinsons Retail. Free cash flow for the period was a net inflow of US$89 million, compared with US$61 million in the first half of 2024. As at 30 June 2025, the Group's net cash was US$442 million, compared to US$468 million net debt at 31 December 2024. Subsidiaries Sales for the Health & Beauty division were US$1.3 billion, up 4% year-on-year on a LFL basis, underscoring the strengthening brand equity of Mannings and Guardian as trusted advisors in health and wellness. Mannings Hong Kong delivered strong LFL sales growth of 6%, driven by growing basket size as the team continued to enhance assortment in key wellness categories, including supplements and derma skin care. Solid LFL sales performance of Guardian was supported by basket size increases across key Southeast Asian markets and improved promotional efficiency, particularly in Indonesia. Integrating the Own Brand team across Food and Health & Beauty drove stronger product relevance and cost efficiency, resulting in improved sales and profit productivity per SKU. Overall, divisional profit grew 8% to US$109 million on a LFL basis1. Total Convenience sales were US$1.1 billion, down 4% year-on-year on a LFL basis, primarily due to reduced volumes of lower-margin cigarette following tax increases in Hong Kong at the end of February 2024. Excluding cigarettes, overall LFL sales were down 1%. Hong Kong performance recovered in the second quarter, following the annualisation of the tax effect and continued growth in higher-margin ready-to-eat (RTE) categories. Excluding cigarettes, LFL sales for the first half were in line with the prior comparable period. 7-Eleven Singapore reported LFL sales below the same period last year. South China reported robust sales growth due to network expansion but lower LFL sales given intensified subsidy initiatives from food delivery platforms. The team remains focused on driving footfall and sales by expanding the RTE offering, including a larger rollout of the Food Bar format to 375 stores by the end of this year. Despite a favourable sales mix shift towards higher-margin RTE products, profit for the division dropped by 18% year-on-year to US$38 million due to tough comparables in the first half of 2024 as a result of a one-off windfall gain from cigarette inventory purchased before tax increase. Excluding which, profit for the division was up 9% year-on-year. Revenue for the Food division reduced marginally to US$1.5 billion, after excluding the impact of the divestment of the Hero Supermarket business last year. Sales resumed growth in the second quarter, supported by the Group's focus on enhancing the value of consumers' food baskets. In Hong Kong, investment in reduced pricing has resulted in a 2.5% increase in footfall in May and 3.4% in June, in addition to a consistent rise in items per basket. To further enhance its fresh and value proposition, the Wellcome team launched a partnership with Dingdong Limited (DDL), a leading Chinese online grocery platform, during the second quarter of 2025. The collaboration offers consumers a wider selection of fresh produce at more competitive prices. The team's effort to strategically source the core basket will support both price reinvestment and continued net margin expansion in the coming years. Overall Food profit grew 14% year-on-year to US$24 million on a LFL basis1. Sales performance of the Home Furnishings division remained challenged due to intense competition and shifts in basket mix, mainly in Hong Kong and Indonesia while Taiwan demonstrated relative resilience. Effective cost control measures across markets supported a recovery in underlying profit for the first half of the year. The IKEA Hong Kong business is strengthening its value-driven omnichannel proposition by reinvesting in core product pricing, evolving seasonal food range and leveraging yuu data for more precise customer targeting. In Indonesia, the IKEA team remains focused on driving sales through an expanded digital presence and intensified marketing efforts. Digital During the first half of 2025, the Group continued to strengthen its digital presence with the launch of new online channels, including a 7-Eleven app in Singapore. Our expanded digital assets, quick commerce service with third-party platforms and data-driven personalised offerings create a seamless omnichannel shopping experience across physical and digital touchpoints, contributing to a growing e-commerce penetration of approximately 5%. Daily e-commerce order volume surpassed 96,000, reflecting an 85% year-on-year increase and a substantial improvement in profit contribution. DFIQ, the Group's retail media business, continues to gain strong momentum, completing over 160 targeted marketing campaigns in the first half of 2025, compared to 12 in the prior comparable period. The DFIQ team has successfully piloted in-store media in select Mannings stores in Hong Kong, as well as Guardian and 7-Eleven outlets in Singapore. This uniquely integrated online-to-offline retail media solution provides suppliers with an expanded reach, driving enhanced customer loyalty and conversion throughout the entire purchase journey. Associates The Group's share of Maxim's underlying profits was US$14 million for the first half of 2025, up from US$8 million in the same period last year, underpinned by continued cost optimisation and operational efficiency measures. Sales performance was largely stable year-on-year, with strong growth in Southeast Asia offset by weaker restaurant performance in Hong Kong and the Chinese mainland. Underlying profit contribution from Robinsons Retail was US$18 million, an improvement of approximately US$9 million from the first half of 2024. This includes the impact of two additional months of contribution, amounting to approximately US$5 million, following the completion of the divestment at the end of May 2025. The divestment of the Group's stake in Yonghui was completed in February 2025. On 24 March 2025, the Group announced that it had entered into a definitive agreement with Macrovalue, a leading Southeast Asian retail group, with respect to the divestment of its Singapore Food business, which includes the Cold Storage, CS Fresh, Jason's Deli and Giant brands, for a total cash consideration of SGD125 million or approximately US$93 million, subject to adjustments. The transaction is subject to closing conditions and is expected to be completed by the end of 2025. On 30 May 2025, the Group announced and completed the divestment of its 22.2% stake, in Robinsons Retail Holdings, Inc., for a total cash consideration of PHP15.8 billion or approximately US$283 million. Following the completion of the transaction, the Group ceases to hold any interest in Robinsons Retail. The above transactions reflect the Group's strategic pivot from a portfolio investor to a focused operating company, enabling the Group to redeploy capital to support the growth of its subsidiary businesses with higher accretive returns. OUTLOOK The Group remains confident in its ability to navigate the evolving market landscape, supported by strategic initiatives aimed at driving market share gain and profit growth across all businesses. These initiatives include strengthening the value proposition, optimising assortment through data-driven insights, expanding omnichannel presence and accelerating monetisation of digital assets. With a more focused business portfolio and enhanced operational efficiency, the Group is committed to delivering sustained, profitable growth by balancing ongoing investments in businesses and areas with long-term strategic value, while also increasing returns for shareholders. The Group restates its full-year organic revenue growth outlook to a range of 0.5% to 1.0% (from approximately 2%), reflecting broader economic uncertainty and a sharper-than-expected decline in cigarette sales. Despite a more cautious revenue outlook, the Group expects to deliver stronger profitability through enhanced operational efficiency and disciplined cost management. The Group, therefore, revises its full-year guidance of underlying profit attributable to shareholders to be between US$250 million and US$270 million (up from previously between US$230 million and US$270 million). Scott Price Group Chief Executive
Arabian Post
22-07-2025
- Business
- Arabian Post
DFI Retail Group Holdings Limited Half-Year Results For The Six Months Ended 30 June 2025 And Announcement Of Special Dividend
39% underlying earnings growth Increased contributions from associates, Health & Beauty and Food Health & Beauty delivered strong like-for-like (LFL) sales growth of 4% Portfolio simplification continues with the announced divestment of Singapore Food business and sale of minority stake in Robinsons Retail Proceeds from Yonghui and Robinsons Retail divestments strengthen balance sheet to a net cash position of US$442 million Raised full-year underlying profit guidance to be between US$250 million and US$270 million Declared special dividend of US¢44.30 per share in addition to interim dividend of US¢3.50 HONG KONG SAR – Media OutReach Newswire – 22 July 2025 – 'We are pleased to report strong first-half underlying profit growth to US$105 million, supported by improved Health & Beauty and Food profitability, higher contribution from associates, and a stabilising revenue growth trend. Our ongoing portfolio evolution enables us to prioritise capital on high-margin businesses and growth initiatives, while providing strategic flexibility for inorganic opportunities. As a result of our strategic progress, we are pleased to announce a special dividend of US¢44.30 per share – the first in 18 years – returning a total of US$647 million to shareholders, including the regular interim dividend. These decisions underscore our confidence in DFI's long-term growth strategy and commitment to shareholder returns.' Scott Price Group Chief Executive ADVERTISEMENT OVERVIEW The Group continued to demonstrate strong business resilience by effectively executing its strategic and margin expansion initiatives. Despite the continued shift towards value by consumers, LFL subsidiary sales for the first half of 2025 remained largely stable compared to the same period last year, excluding the impact of a significant cigarette tax increase in Hong Kong and the divestment of Hero Supermarket business in Indonesia in 2024. LFL subsidiary sales have demonstrated a steady recovery with a return to moderate growth in the second quarter of 2025. Significant progress has been made in the Group's strategic pivot from a portfolio investor to an operating company centred on five key deliverables: Retail excellence : Delivering a best-in-class customer proposition : Delivering a best-in-class customer proposition Customer access : Strategically expanding store network : Strategically expanding store network Omnichannel and data ecosystem : Powering e-commerce and retail media with data-driven insights : Powering e-commerce and retail media with data-driven insights Lean and agile operations : Streamlining business for more efficient decision making : Streamlining business for more efficient decision making Evolving portfolio: Prioritising capital returns and shareholder value The Group continues to reinvest in pricing to deliver a stronger customer value proposition while resetting our sourcing strategy to expand gross profit. Reduction in financing costs and higher underlying profit from associates contributed to a 39% increase in underlying profit attributable to shareholders for the first half of 2025. The Group continues to evolve its portfolio to enhance operational focus and enable more efficient capital allocation, supporting subsidiary business growth both organically and inorganically should shareholder accretive opportunities arise. During the reporting period, the Group completed the divestment of minority stakes in both Yonghui and Robinsons Retail, generating total gross proceeds of approximately US$900 million. Additionally, the Group announced the divestment of its Singapore Food business for approximately US$93 million in cash consideration. ADVERTISEMENT As a result of this strategic progress, the Board has approved a special dividend of US¢44.30 per share, equivalent to US$600 million in total payment. Concurrently, the Group declared an interim dividend of US¢3.50 per share, in line with the prior comparable period. These decisions underscore the Group's confidence in its long-term growth strategy and its commitment to creating value for its shareholders. OPERATING PERFORMANCE Overall Total revenue from subsidiaries for the first half of 2025 was US$4.4 billion, up 0.3% year-on-year on a LFL basis, excluding the impact of a significant cigarette tax increase in Hong Kong and the divestment of the Hero Supermarket business in Indonesia in 2024. Strong sales growth in the Health & Beauty division was offset by lower contributions from other segments. Total revenue, which includes 100% of associates and joint ventures, was US$8.2 billion. Excluding the impact of the minority stake divestment in Yonghui completed at the end of February 2025, as well as the additional two months of sales contribution from Robinsons Retail following the stake disposal at the end of May 2025, total revenue increased by approximately 1%. Total underlying profit attributable to shareholders for the first half of 2025 reached US$105 million, representing a year-on-year increase of 39%, primarily driven by improved performance in associates. Underlying profit from subsidiaries was US$75 million, reflecting a 3% year-on-year increase. Strong performance in the Health & Beauty and Food divisions was partially offset by lower profitability in Convenience as a result of the cigarette tax impact, and higher selling, general and administrative expenses[1] primarily due to a one-time reversal of long-term incentive accruals in 2024 related to executive departures. After accounting for the divestment of Yonghui, underlying profit from associates was US$30 million, an improvement from US$3 million from the prior comparable period, supported by higher contributions from both Maxim's and Robinsons Retail. Free cash flow for the period was a net inflow of US$89 million, compared with US$61 million in the first half of 2024. As at 30 June 2025, the Group's net cash was US$442 million, compared to US$468 million net debt at 31 December 2024. Subsidiaries Sales for the Health & Beauty division were US$1.3 billion, up 4% year-on-year on a LFL basis, underscoring the strengthening brand equity of Mannings and Guardian as trusted advisors in health and wellness. Mannings Hong Kong delivered strong LFL sales growth of 6%, driven by growing basket size as the team continued to enhance assortment in key wellness categories, including supplements and derma skin care. Solid LFL sales performance of Guardian was supported by basket size increases across key Southeast Asian markets and improved promotional efficiency, particularly in Indonesia. Integrating the Own Brand team across Food and Health & Beauty drove stronger product relevance and cost efficiency, resulting in improved sales and profit productivity per SKU. Overall, divisional profit grew 8% to US$109 million on a LFL basis1. Total Convenience sales were US$1.1 billion, down 4% year-on-year on a LFL basis, primarily due to reduced volumes of lower-margin cigarette following tax increases in Hong Kong at the end of February 2024. Excluding cigarettes, overall LFL sales were down 1%. Hong Kong performance recovered in the second quarter, following the annualisation of the tax effect and continued growth in higher-margin ready-to-eat (RTE) categories. Excluding cigarettes, LFL sales for the first half were in line with the prior comparable period. 7-Eleven Singapore reported LFL sales below the same period last year. South China reported robust sales growth due to network expansion but lower LFL sales given intensified subsidy initiatives from food delivery platforms. The team remains focused on driving footfall and sales by expanding the RTE offering, including a larger rollout of the Food Bar format to 375 stores by the end of this year. Despite a favourable sales mix shift towards higher-margin RTE products, profit for the division dropped by 18% year-on-year to US$38 million due to tough comparables in the first half of 2024 as a result of a one-off windfall gain from cigarette inventory purchased before tax increase. Excluding which, profit for the division was up 9% year-on-year. Revenue for the Food division reduced marginally to US$1.5 billion, after excluding the impact of the divestment of the Hero Supermarket business last year. Sales resumed growth in the second quarter, supported by the Group's focus on enhancing the value of consumers' food baskets. In Hong Kong, investment in reduced pricing has resulted in a 2.5% increase in footfall in May and 3.4% in June, in addition to a consistent rise in items per basket. To further enhance its fresh and value proposition, the Wellcome team launched a partnership with Dingdong Limited (DDL), a leading Chinese online grocery platform, during the second quarter of 2025. The collaboration offers consumers a wider selection of fresh produce at more competitive prices. The team's effort to strategically source the core basket will support both price reinvestment and continued net margin expansion in the coming years. Overall Food profit grew 14% year-on-year to US$24 million on a LFL basis1. Sales performance of the Home Furnishings division remained challenged due to intense competition and shifts in basket mix, mainly in Hong Kong and Indonesia while Taiwan demonstrated relative resilience. Effective cost control measures across markets supported a recovery in underlying profit for the first half of the year. The IKEA Hong Kong business is strengthening its value-driven omnichannel proposition by reinvesting in core product pricing, evolving seasonal food range and leveraging yuu data for more precise customer targeting. In Indonesia, the IKEA team remains focused on driving sales through an expanded digital presence and intensified marketing efforts. Digital During the first half of 2025, the Group continued to strengthen its digital presence with the launch of new online channels, including a 7-Eleven app in Singapore. Our expanded digital assets, quick commerce service with third-party platforms and data-driven personalised offerings create a seamless omnichannel shopping experience across physical and digital touchpoints, contributing to a growing e-commerce penetration of approximately 5%. Daily e-commerce order volume surpassed 96,000, reflecting an 85% year-on-year increase and a substantial improvement in profit contribution. DFIQ, the Group's retail media business, continues to gain strong momentum, completing over 160 targeted marketing campaigns in the first half of 2025, compared to 12 in the prior comparable period. The DFIQ team has successfully piloted in-store media in select Mannings stores in Hong Kong, as well as Guardian and 7-Eleven outlets in Singapore. This uniquely integrated online-to-offline retail media solution provides suppliers with an expanded reach, driving enhanced customer loyalty and conversion throughout the entire purchase journey. Associates The Group's share of Maxim's underlying profits was US$14 million for the first half of 2025, up from US$8 million in the same period last year, underpinned by continued cost optimisation and operational efficiency measures. Sales performance was largely stable year-on-year, with strong growth in Southeast Asia offset by weaker restaurant performance in Hong Kong and the Chinese mainland. Underlying profit contribution from Robinsons Retail was US$18 million, an improvement of approximately US$9 million from the first half of 2024. This includes the impact of two additional months of contribution, amounting to approximately US$5 million, following the completion of the divestment at the end of May 2025. The divestment of the Group's stake in Yonghui was completed in February 2025. RECENT BUSINESS DEVELOPMENTS On 24 March 2025, the Group announced that it had entered into a definitive agreement with Macrovalue, a leading Southeast Asian retail group, with respect to the divestment of its Singapore Food business, which includes the Cold Storage, CS Fresh, Jason's Deli and Giant brands, for a total cash consideration of SGD125 million or approximately US$93 million, subject to adjustments. The transaction is subject to closing conditions and is expected to be completed by the end of 2025. On 30 May 2025, the Group announced and completed the divestment of its 22.2% stake, in Robinsons Retail Holdings, Inc., for a total cash consideration of PHP15.8 billion or approximately US$283 million. Following the completion of the transaction, the Group ceases to hold any interest in Robinsons Retail. The above transactions reflect the Group's strategic pivot from a portfolio investor to a focused operating company, enabling the Group to redeploy capital to support the growth of its subsidiary businesses with higher accretive returns. OUTLOOK The Group remains confident in its ability to navigate the evolving market landscape, supported by strategic initiatives aimed at driving market share gain and profit growth across all businesses. These initiatives include strengthening the value proposition, optimising assortment through data-driven insights, expanding omnichannel presence and accelerating monetisation of digital assets. With a more focused business portfolio and enhanced operational efficiency, the Group is committed to delivering sustained, profitable growth by balancing ongoing investments in businesses and areas with long-term strategic value, while also increasing returns for shareholders. The Group restates its full-year organic revenue growth outlook to a range of 0.5% to 1.0% (from approximately 2%), reflecting broader economic uncertainty and a sharper-than-expected decline in cigarette sales. Despite a more cautious revenue outlook, the Group expects to deliver stronger profitability through enhanced operational efficiency and disciplined cost management. The Group, therefore, revises its full-year guidance of underlying profit attributable to shareholders to be between US$250 million and US$270 million (up from previously between US$230 million and US$270 million). Scott Price Group Chief Executive [1] Own brand and e-commerce related costs are reclassified from selling, general and administrative expenses to the corresponding business segments beginning first half of 2024 Hashtag: #DFIRetailGroup#Guardian#Mannings#7-Eleven#ColdStorage#Giant#Wellcome#IKEA#yuu#Maxim's The issuer is solely responsible for the content of this announcement. DFI Retail Group DFI Retail Group (the Group) is a leading Asian retailer, driven by its purpose to 'Sustainably Serve Asia for Generations with Everyday Moments'. At 30 June 2025, the Group and its associates operated over 7,500 outlets, of which over 5,500 stores were operated by subsidiaries. The Group, together with its associates, employed over 83,000 people, with over 45,000 employed by subsidiaries. The Group had total annual revenue in 2024 of US$24.9 billion and reported revenue of US$8.9 billion. DFI is dedicated to delivering quality, value and service to Asian consumers through a compelling retail experience supported by an extensive store network and highly efficient supply chains. The Group including its associates operates a portfolio of well-known brands across five key divisions: health and beauty, convenience, food, home furnishings and restaurants. The principal brands are: Health and Beauty • Mannings on the Chinese mainland, Hong Kong and Macau S.A.R.; Guardian in Brunei, Indonesia, Malaysia, Singapore and Vietnam. Convenience • 7-Eleven in Hong Kong and Macau S.A.R., Singapore and Southern China. Food • Wellcome and Market Place in Hong Kong S.A.R.; Cold Storage and Giant in Singapore; Lucky in Cambodia. Home Furnishings • IKEA in Hong Kong and Macau S.A.R., Indonesia and Taiwan. Restaurants • Hong Kong Maxim's group on the Chinese mainland, Hong Kong and Macau S.A.R., Cambodia, Laos, Malaysia, Singapore, Thailand and Vietnam. The Group's parent company, DFI Retail Group Holdings Limited, is incorporated in Bermuda and has a primary listing in the equity shares (transition) category of the London Stock Exchange, with secondary listings in Bermuda and Singapore. The Group's businesses are managed from Hong Kong. DFI Retail Group is a member of the Jardine Matheson group.
Malaysiakini
22-07-2025
- Politics
- Malaysiakini
LFL cries foul after AGC drops Zamri, Firdaus cases
Lawyers for Liberty (LFL) has panned the government after the Attorney-General's Chambers (AGC) said there was insufficient evidence to prosecute controversial Muslim preachers Zamri Vinoth and Firdaus Wong. In a statement today, LFL director Zaid Malek said that the response 'smacks of double-standards and selective prosecution'.
Malaysiakini
22-07-2025
- Politics
- Malaysiakini
LFL tells govt staff to defy chief sec's rally warning, to provide legal aid
Government servants have been urged to defy a recent warning from the chief secretary of the government against joining the scheduled Himpunan Turun Anwar rally this week. In a statement, Lawyers for Liberty (LFL) director Zaid Malek labelled Shamsul Azri Abu Bakar's warning yesterday as 'unlawful' and a 'desperate move' by the government.
