Driven by strong performances in its health & beauty and home furnishing segments, DFI Retail Group has reported a 12% y-o-y growth in its continuing businesses for the first quarter this year.
Coupled with "disciplined" cost control and lower financing costs, the company managed to improve its underlying profit from its continuing businesses by 49% y-o-y in the same period. Underlying sales, excluding cigarettes, was up 4% y-o-y on a constant currency basis.
DFI says it will continue to keep costs down. As at March 31, the company holds a net cash balance of US$56 million.
DFI says it remains focused on increasing total shareholder returns while maintaining financial flexibility to pursue inorganic opportunities that accelerate revenue growth and create long-term strategic value.
"The group continues to make solid progress on its strategic initiatives to drive market share gains and deliver sustained, profitable growth across all segments," the company adds.
It reiterates its mid-term return of capital employed (ROCE) target of above 15% and reaffirms its full-year guidance of underlying profit attributable to shareholders in the range of US$270 million to US$300 million, supported by an organic revenue growth of approximately 2-3%, and a dividend payout policy of 70%.
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DFI Retail shares closed at US$4.16 up 1.46% for the day and up 5.85% year to date.
