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Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Corporate Malaysia's Q2 earnings likely to be damp squib
Maybank Investment Bank forecasts a modest 2.5% earnings growth for the FBM KLCI in 2025. (Bernama pic) PETALING JAYA : Investors hoping for better second-quarter (Q2) earnings from listed companies will likely be left high and dry as Corporate Malaysia is expected to continue the underperformance of Q1 2025. Maybank Investment Bank (Maybank IB) said the upcoming Q2 results season may be muted, reflecting challenges from external uncertainties, particularly the ongoing US-Malaysia tariff negotiations. 'The Q2 results season may yet be another unexciting one but at least one with fewer earnings downgrades,' it said in a strategy note. The research house forecasts a modest 2.5% earnings growth for the FBM KLCI this year, primarily weighed down by the banking sector. However, it anticipates a stronger rebound in 2026 with a projected growth of 7.7%. It has a base case target of 1,660 points for the FBM KLCI, pegged to 14.4 times 2026 estimated price-to-earnings ratio (PER). 'Our base case assumes further de-escalation in trade tensions and favourable outcome from tariff negotiations,' it added. Some bright spots Despite the softer external environment, Maybank IB said there are 'bright spots' to be found. It noted Malaysia's domestic economic fundamentals appear encouraging, pointing to robust consumer activity, a sustained investment cycle, and signs of resilient private demand as cushioning the impact of weaker exports. The economy grew at 4.5% in Q2, slightly faster than the 4.4% year-on-year growth in Q1 as resilient consumer demand offset weaker exports. This suggests a steady growth momentum and indicates external headwinds due to US tariffs are being mitigated by domestic tailwinds, it noted. Maybank IB said investors should watch out for weakness in the technology sector. Banks are 'unlikely to yield much surprise' even as it watches for lower loan growth. However, it expects some positive momentum for construction, healthcare, property, and more selectively, the oil and gas, and utilities sectors. It said most plantation companies would be weaker quarter-on-quarter due to lower crude palm oil prices, though some could book gains from disposal and forex exchange movements. Consumer and real estate investment trusts are expected to be softer, after a seasonally strong first quarter.
Yahoo
a day ago
- Business
- Yahoo
ISRG: Solid Numbers, Tariff Concerns
Key Points Intuitive Surgical posted a strong quarter, topping expectations on 20%-plus revenue and earnings growth. The company's latest-generation systems are continuing to gain traction. Intuitive sounded a cautious outlook about the quarters ahead due to tariff uncertainty. 10 stocks we like better than Intuitive Surgical › Here's our initial take on Intuitive Surgical's (NASDAQ: ISRG) financial report. Key Metrics Metric Q2 2024 Q2 2025 Change vs. Expectations Revenue $2.01 billion $2.44 billion 20% Beat Adjusted EPS $1.78 $2.19 23% Beat Da Vinci systems placed 341 395 16% n/a Da Vinci total installed systems 9,203 10,488 14% n/a Intuitive Momentum Remains Strong Robotic surgery pioneer Intuitive Surgical posted another solid quarterly beat, growing revenue by 20% and earnings per share by 23% in the most recent quarter. The company continues to see strong demand for its machines and strong usage once they are installed, driving a beat. The company placed 395 of its da Vinci systems in the quarter, up 16% from a year ago, and the number of high-end da Vinci 5 systems more than doubled to 180. At the end of the quarter, Intuitive had an installed base of 10,488 systems, up from 9,203 a year ago. Worldwide procedures grew by 17%, a good sign for a company that sells not just the new systems but disposable equipment needed on a per-surgery basis. The company ended the second quarter of 2025 with $9.53 billion in cash, up $431 million during the quarter, driven by cash generated from operations. Immediate Market Reaction Though the quarter was strong, there are some questions about how tariffs would impact the company in the quarters ahead. Intuitive share prices were down about 4% in after-market trading following the release but ahead of the company's call with investors. What to Watch Intuitive does not expect that 17% procedure growth to sustain into the second half. For the full year, the company forecasts procedure growth of about 15.5% to 17%, compared to 17% in the quarter and all of last year. Operating expenses are also expected to climb by 10% to 14% for the year, compared to 10% in 2024. Intuitive said the updated expectation "reflects the company's estimates of the adverse impact from tariffs that are currently in effect as of the time of this press release and assumes such tariffs remain in place." The company continues to push the envelope, during the quarter conducting a telesurgery demonstration in which doctors in Georgia and France operated a dual-console da Vinci 5 system to simulate a procedure. Those sorts of innovations promise to both allow more patients to benefit from the systems and open up new potential markets for the company. Intuitive remains on the path for growth, but near-term tariff headwinds are likely to continue to cloud the picture in the quarters to come. Helpful Resources Full earnings report Investor relations page Additional coverage Should you invest $1,000 in Intuitive Surgical right now? Before you buy stock in Intuitive Surgical, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuitive Surgical wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool has a disclosure policy. ISRG: Solid Numbers, Tariff Concerns was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Exploring Three High Growth Tech Stocks In The US Market
As the S&P 500 and Nasdaq Composite recently retreated from record highs amid a deluge of earnings reports, investors are closely watching how major tech stocks will perform in this dynamic environment. In such a climate, identifying high-growth tech stocks involves looking for companies with strong earnings potential and innovative capabilities that can thrive despite broader market fluctuations. Top 10 High Growth Tech Companies In The United States Name Revenue Growth Earnings Growth Growth Rating Super Micro Computer 25.17% 38.20% ★★★★★★ Ardelyx 21.16% 61.61% ★★★★★★ Circle Internet Group 30.97% 60.79% ★★★★★★ TG Therapeutics 26.05% 39.12% ★★★★★★ AVITA Medical 27.39% 61.05% ★★★★★★ Alnylam Pharmaceuticals 24.07% 59.30% ★★★★★★ Alkami Technology 20.53% 76.67% ★★★★★★ Ascendis Pharma 34.90% 59.91% ★★★★★★ Caris Life Sciences 24.80% 72.64% ★★★★★★ Lumentum Holdings 21.33% 105.07% ★★★★★★ Click here to see the full list of 221 stocks from our US High Growth Tech and AI Stocks screener. Let's dive into some prime choices out of from the screener. BitFuFu Simply Wall St Growth Rating: ★★★★★☆ Overview: BitFuFu Inc. offers digital asset mining solutions across North America, Asia, Europe, and globally with a market capitalization of approximately $699.73 million. Operations: BitFuFu Inc. generates revenue primarily from its Internet Software & Services segment, reporting $396.96 million in this area. The company operates internationally, providing digital asset mining solutions across multiple regions. BitFuFu showcases a robust trajectory in the tech sector, with its revenue forecast to surge by 31.4% annually, significantly outpacing the US market average of 9%. This growth is underpinned by a remarkable expected annual earnings increase of 72.3%, highlighting its potential in an expanding industry. Despite recent challenges, including a significant one-off loss of $8.1 million affecting past results, BitFuFu continues to innovate and expand its operations as evidenced by recent increases in Bitcoin production and hashrate management. These developments suggest resilience and adaptability in a volatile market, positioning BitFuFu as a noteworthy entity in high-growth tech discussions. Click here and access our complete health analysis report to understand the dynamics of BitFuFu. Explore historical data to track BitFuFu's performance over time in our Past section. CCC Intelligent Solutions Holdings Simply Wall St Growth Rating: ★★★★☆☆ Overview: CCC Intelligent Solutions Holdings Inc. operates as a software as a service (SaaS) company serving the property and casualty insurance sectors in the United States and China, with a market cap of $6.43 billion. Operations: The company generates revenue primarily from its software and programming segment, amounting to $969.13 million. It operates within the property and casualty insurance industry across the United States and China. CCC Intelligent Solutions Holdings Inc. (CCC) is navigating a transformative path in the tech landscape, marked by a promising 75.6% forecasted annual earnings growth, significantly outstripping the US market's average of 14.7%. Despite facing challenges such as a substantial one-off loss of $16.1 million that skewed recent financial results, CCC's strategic initiatives—including the launch of innovative products like CCC® Pay Workflow—demonstrate its commitment to enhancing operational efficiency and customer engagement in the collision repair sector. The recent board appointment of Barak Eilam, with his extensive background in AI and enterprise software, further positions CCC to capitalize on growth opportunities within tech-driven customer solutions, reinforcing its potential amidst competitive industry dynamics. Navigate through the intricacies of CCC Intelligent Solutions Holdings with our comprehensive health report here. Evaluate CCC Intelligent Solutions Holdings' historical performance by accessing our past performance report. Integral Ad Science Holding Simply Wall St Growth Rating: ★★★★☆☆ Overview: Integral Ad Science Holding Corp. is a digital advertising verification company with operations across multiple countries, including the United States and several in Europe and Asia, and has a market cap of approximately $1.36 billion. Operations: IAS generates revenue primarily from its Internet Software & Services segment, amounting to approximately $549.64 million. The company operates in various regions, including the US, Europe, and Asia. Integral Ad Science Holding Corp. (IAS) is making significant strides in the tech sector, particularly with its recent strategic alliances and product innovations. The company's partnership with Snap Inc. to introduce a customized attention measurement tool on Snapchat exemplifies its commitment to enhancing ad measurement technologies, a move that could reshape advertising strategies across social platforms. Additionally, IAS's inclusion in multiple Russell 2000 indexes underscores its growing influence and stability within the market. Financially, IAS reported a robust annual earnings growth of 21%, outpacing the US market average of 14.7%, alongside a healthy revenue increase of 9.9% per year, indicating sustained operational success and market confidence. Unlock comprehensive insights into our analysis of Integral Ad Science Holding stock in this health report. Understand Integral Ad Science Holding's track record by examining our Past report. Seize The Opportunity Click this link to deep-dive into the 221 companies within our US High Growth Tech and AI Stocks screener. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor. Ready To Venture Into Other Investment Styles? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FUFU CCCS and IAS. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data
Zawya
2 days ago
- Business
- Zawya
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 basis 1. 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 basis 1. 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 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. DFI Retail Group
Malay Mail
2 days ago
- Business
- Malay Mail
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 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 [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 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 PriceThe 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 progress has been made in the Group's strategic pivot from a portfolio investor to an operating company centred on five key deliverables: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 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 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 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 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 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 basisTotal 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% 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 basisSales 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 leveragingdata for more precise customer targeting. In Indonesia, the IKEA team remains focused on driving sales through an expanded digital presence and intensified marketing 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 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 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 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 divestment of the Group's stake in Yonghui was completed in February 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 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 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 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 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 PriceHashtag: #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.
