Hard Discount Philippines Inc., operator of discount store DALI Everyday, posted losses amounting to P1.88 billion in 2023, more than double the losses it reported the previous year of P894.68 million.
HDPI, whose parent firm is Switzerland-based Dali Discount AG, reported the loss despite growing its revenue by 125 percent to P22.31 billion from only P9.91 billion the previous year.
Since opening its first store in February 2020, Hard Discount has accumulated a capital deficit of P1.29 billion traced to successive losses that has prompted capital infusion from investors totaling P4.67 billion as of last year.
The Manila-based multilateral lender Asian Development Bank (ADB) the previous May announced investing $10 million to finance its store and distribution center expansion, which was on top of an earlier $15 million investment also for store and distribution network expansion and for its cold chain infrastructure requirement.
Other HDPI shareholders include private equity firm Creador, Navegar and Venturi Partners.
HDPI’s parent, the Singapore-incorporated HDPM Sin Pte. Ltd., has committed to provide the business the finances required for continuity and meet its liabilities as and when these fall due.
HDPI likewise projected profit margins improving 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 flow from its operations to meet its obligations as and when they fall due,” the company said.
DALI Everyday Grocery opened its first store in February 2020 in Sta. Rosa, Laguna and aims. The plan is to grow its store network to 950 by year end.
