DFI keeps 2026 profit outlook after stronger quarter

Q1 operating profit rises 12%.

DFI Retail Group kept its full-year profit guidance after first-quarter operating profit from continuing businesses rose 12%, and underlying profit from continuing businesses jumped 49%.

The Asian retailer said underlying subsidiary sales from continuing businesses, excluding cigarettes, rose 4% YoY on a constant-currency basis and 3% on a like-for-like basis in the quarter, driven by strong performances in Health & Beauty and Home Furnishings as well as a return to growth in Convenience.

DFI reaffirmed its 2026 guidance for underlying profit attributable to shareholders of $270m to $300m, supported by expected organic revenue growth of about 2% to 3%, and maintained its dividend payout policy of 70%.

Health & Beauty delivered 7% like-for-like sales growth, whilst Convenience sales excluding cigarettes rose 2% like for like and Home Furnishings returned to positive like-for-like growth of 4% after 10 consecutive quarters of decline.

Food also improved, with Hong Kong sales up 1% on a constant-currency basis compared with a decline a year earlier.

The group said online daily order volume rose more than 60% year on year to more than 133,000 orders a day, helping its overall digital ecosystem turn profitable in the first quarter.

DFI added that it ended March with net cash of $56m and remained on track to meet its medium-term return on capital employed target of above 15%.