DFI Retail Group Holdings Limited

DFI reported first-half 2026 subsidiary revenue of $4.1 billion, up 4% year-on-year, and Maxim’s revenue of $1.4 billion, also up 4%. Underlying profit from subsidiaries rose 49% to $101 million, Maxim’s underlying profit rose 15% to $16 million, and total underlying profit increased 44% to $117 million. Subsidiary like-for-like sales were up 3%, operating cash flow increased 16%, free cash flow was $85 million, and CapEx was $93 million versus full-year guidance of $200 million to $220 million. The interim dividend was raised 77% to $0.062, and full-year 2026 guidance was lifted to 3% to 4% organic sales growth and $285 million to $305 million of underlying profit, from prior guidance of 2% to 3% and $270 million to $300 million.

Scott Price framed the first half as evidence that DFI’s strategy is working, highlighting margin expansion, better like-for-like trends, and stronger competitiveness across formats. He emphasized a shift from volume share to value share in Hong Kong food, growth in wellness-led Health & Beauty, a turnaround in convenience and IKEA, and a stronger digital ecosystem. His tone was confident and upbeat, with repeated references to flexibility, shareholder returns, and further margin opportunity.

Tom Van der Lee pointed to a “very strong first half,” saying the company is on track to deliver the top end of its 2028 guidance. He cited subsidiary revenue of $4.1 billion, underlying profit of $101 million, total underlying profit of $117 million, a 70 basis point improvement in subsidiary margin to 2.4%, and SG&A down 15% like-for-like. He also noted operating cash flow up 16%, free cash flow of $85 million, CapEx of $93 million in line with the $200 million to $220 million full-year plan, and a 77% increase in the interim dividend to $0.062 while keeping the 70% full-year payout policy.

Analysts focused on the margin profile, the rationale for management changes, food pricing in Hong Kong, Malaysia Health & Beauty promotions, store counts, SG&A savings, retail media economics, and the Cody acquisition. Management said first-half margin pressure was mostly temporary or strategic, especially Malaysia voucher-driven competition in Health & Beauty, and expected second-half margins to improve across most formats. On Cody, management said it is a small, less-than-$4 million acquisition that is not a pivot into outdoor media, but a way to access media dollars and support a broader retail media P&L, with breakeven expected within 12 to 18 months. They also said the 2026 outlook supports confidence in the 2028 targets, but they are not formally revising those targets yet.