Budget retailer leverages cost
Despite receiving a capital infusion of P4.67 billion from investors as of last year, the business continues to face financial challenges
Daily TribuneDespite receiving a capital infusion of P4.67 billion from investors as of last year, the business continues to face financial challenges
DALI Everyday Grocery, a budget-friendly retailer supported by the Asian Development Bank (ADB), has revolutionized the local retail landscape by providing affordability and convenience that attract cost-conscious consumers.
However, a report by the Hard Discount Philippines, Inc. (HDPI), which operates DALI Everyday Grocery, to the Securities and Exchange Commission (SEC) showed that the company incurred a P1.88 billion loss in 2023, a 110 percent increase compared to the P894.68 million reported in 2022.
Notably, DALI Everyday Grocery grew its revenue by 125 percent to P22.31 billion compared to P9.19 billion the previous year.
Despite receiving a capital infusion of P4.67 billion from investors as of last year, the business continues to face financial challenges.
Over the years, HDPI has experienced consecutive losses totaling P3.26 billion, leading to a capital deficit of P1.29 billion as of the end of 2023.
Financial easing seen
Nonetheless, HDPI said that profit margins will improve in the next five years as cost-efficiency measures are underway.
“Management believes that with the planned increase in equity, the commitment of and continued financial support from the parent company, and the projected improvement in net profit margin, the company will be able to generate sufficient cash flows from its operations to meet its obligations as and when they fall due,” it said.
DALI Everyday Grocery opened its first store in February 2020 and is well on its way to growing its footprint to 950 by the end of the year.
Hard Discount Philippines is a wholly-owned subsidiary of HDPM Sin Pte. Ltd., a foreign corporation established and governed by the laws of Singapore.
Dali Discount AG, founded in Switzerland in 2020, serves as the ultimate parent company of both Hard Discount Philippines and HDPM Sin. Dali Discount AG’s primary focus is on Southeast Asia.
