DFI Retail moved to a net loss of 1H; Full-year earnings forecast below 2021

By Anthony O. Goriainoff

DFI Retail Group Holdings Ltd. said on Thursday it posted a net loss in the first half of 2022 as profits were hit by supply chain and inflationary pressures, and that annual profits would be lower than those seen in 2021.

The pan-Asian retailer, part of the Jardine Matheson Holdings Ltd. group, said the pandemic continued to have a significant negative effect on all of its businesses and that the first quarter was particularly difficult in China and Hong Kong.

The company reported a net loss for the first six months of the year of $57.6 million, compared to a net profit of $16.7 million for the first half of 2021.

Underlying loss — a measure that excludes exceptional and other one-time items — was $52 million, compared to underlying profit of $32 million a year earlier.

Total first-half revenue, including associates and joint ventures, reached $14.03 billion, compared to $13.95 billion a year earlier.

The board declared an interim dividend of 1 cent per share, up from 3 cents per share the previous year. The company said this was due to the loss incurred during the period and its commitment to maintaining a strong balance sheet position.

“The group remains confident…in the strengths of the group’s brands and believes that the additional investment made to advance digital capabilities and improve the group’s stores and operating standards will lead to sustainable growth for the group, as the impact of the pandemic is receding,” the company said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

Ann J. Cox