HARD DISCOUNT Philippines, Inc. (HDPI), the corporate entity behind the DALI discount grocery chain, reported a widened net loss in 2023 primarily due to increased operating expenses.
According to the company’s regulatory filing, HDPI recorded a net loss of P1.88 billion in 2023, marking a 110% increase from the P894.68-million loss in the previous year.
Despite the expanded net loss, HDPI achieved a revenue of P22.31 billion in 2023, a 141% surge compared to P9.27 billion in the prior year, driven by higher sales.
Operating expenses jumped by 255% to P3.01 billion in 2023 from P850.39 million in 2022, mainly attributed to increased expenditures on salaries, wages, and benefits.
As of the end of 2023, HDPI accumulated losses totaling P3.26 billion, resulting in a capital deficit of P1.29 billion for the same period.
It also disclosed that P4.67 billion worth of additional capital was infused by stockholders as of end-2023.
HDPI is a wholly owned subsidiary of HDPM Sin Pte. Ltd., a foreign company incorporated under Singaporean law. The ultimate parent of HDPI and HDPM Sin is Switzerland-founded Dali Discount AG.
“The company forecasts that profit margins will improve over the next five years resulting from the implementation of cost efficiency measures,” HDPI said.
“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 added.
In March, Singapore-based growth equity firm Venturi Partners announced a $25-million investment to fund the expansion of DALI.
DALI seeks to have up to 950 stores across the Philippines by yearend. — Revin Mikhael D. Ochave
