DFI Retail Group Holdings Limited

Reported first-half 2026 subsidiary revenue was $4.1 billion, up 4% year-on-year, and Maxim's revenue was $1.4 billion, also up 4%. Underlying profit from subsidiaries was $101 million, up 49%, while total underlying profit including Maxim's was $117 million, up 44%. SG&A declined 15% year-on-year on a like-for-like basis, operating cash flow rose 16%, free cash flow was $85 million, and capex was $93 million in the first half. The interim ordinary dividend was increased 77% to $0.062 per share. For full-year 2026, management raised sales guidance from 2% to 3% organic growth to 3% to 4%, and underlying profit guidance from $270 million to $300 million to $285 million to $305 million; capex remains $200 million to $220 million, dividend payout policy remains 70%, and ROCE remains on track toward 15% by 2028.

Scott Price framed the quarter as evidence that the strategy is working, repeatedly pointing to margin expansion, improved pricing discipline, and a stronger portfolio. He said the company has moved from a 15% premium to Shenzhen on Hong Kong food baskets to about a 3% discount, and that this creates room to shift from volume share to value share. He also emphasized growth opportunities in wellness, convenience, IKEA, and the digital ecosystem, while stressing that the balance sheet gives DFI flexibility for inorganic opportunities if they are TSR accretive.

Tom Van der Lee said the first half was strong enough to put DFI “firmly on track” for the top end of the 2028 guidance, and detailed the hard numbers behind the improvement. He highlighted $4.1 billion of subsidiary revenue, $101 million of subsidiary underlying profit, $117 million total underlying profit, 15% like-for-like SG&A reduction, and $93 million of first-half capex versus full-year guidance of $200 million to $220 million. He also noted operating cash flow up 16%, free cash flow of $85 million, the raised interim dividend of $0.062, and said the full-year payout ratio remains 70%.

Analysts focused on margin sustainability, the rationale for management changes, Food pricing versus Greater Bay Area competition, Malaysia Health & Beauty promotions, store openings/closures, SG&A savings, and the Cody retail-media acquisition. Management said Health & Beauty margins were pressured by temporary Malaysia voucher-driven competition, but second-half margins should improve; Convenience margin softness was described as a small rounding issue, with second half usually stronger; and Food margins should benefit from direct sourcing and improved pricing discipline. On Cody, management said it was a very small, less-than-$4 million acquisition, not a sector pivot into media, and should be breakeven within about 12 to 18 months while unlocking retail-media monetization.