MANILA, Philippines — Retailer DALI Everyday Grocery remains in the red three years after opening its first store in the country.
Hard Discount Philippines Inc. (HDPI), the corporate entity for the fast-rising grocery chain, incurred a net loss of P1.88 billion as of end-2023, more than double the P894.68 million net loss reported in 2022.
The company, however, saw its revenue surge by 125 percent to P22.31 billion from P9.27 billion the previous year, a regulatory filing showed.
HDPI said it has incurred cumulative losses resulting in a deficit of P3.26 billion as of end-2023 which has led to a capital deficiency of P1.29 billion.
The company reported that additional capital amounting to P4.67 billion was infused by the company’s stockholders as of last year.
HDPI said that its parent company has committed to provide the necessary finances, or procure the provision of such finances, when necessary to enable business continuity and liabilities when it falls due.
The company expects profit margins to improve in the next five years as it works on cost efficiency measures.
“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.
HDPI is a wholly owned subsidiary of HDPM Sin Pte. Ltd., a foreign company incorporated under the laws of Singapore.
Dali Discount AG is the ultimate parent of Hard Discount Philippines and HDPM Sin, which was founded in Switzerland in 2020 with geographic focus in Southeast Asia
DALI started commercial operations in February 2020 with the opening of the first franchised store in Santa Rosa, Laguna.
It is the first company in the country to focus on hard discount retailing, with stores established mostly in rural and peri-urban communities, instead of premium commercial centers in the cities.
DALI aims to grow its store network to 900 to 950 by year-end from roughly 630 at present.