Hard Discount Philippines Inc. (HDPI), operator of the fast-expanding DALI Everyday Grocery chain, reported a deeper net loss of ₱1.97 billion in 2024, slightly higher than the ₱1.9 billion loss in 2023, despite a strong 52 percent jump in revenues to nearly ₱34 billion.
The company’s continuing losses, combined with financial red flags raised by its auditor SGV & Co., raise concerns over its long-term financial health. SGV noted that current liabilities exceeded current assets by ₱134.6 million, with negative operating cash flows of ₱534.8 million in 2023. The audit firm warned that these conditions “may cast significant doubt on the company’s ability to continue as a going concern.”
HDPI’s accumulated deficit reached ₱5.23 billion by end-2024, up from ₱3.26 billion the previous year, underlining the depth of its losses even amid rapid expansion. The company has invested ₱16 billion to build 888 stores nationwide, with its latest opening at Batangas Port. Warehouses in Batangas, Naic, and North Caloocan were completed in 2024, while store construction across key Luzon provinces wrapped up by Q1 2025.
In response to mounting deficits, stockholders infused additional capital of ₱7.56 billion in 2024 and ₱4.67 billion in 2023, categorized as deposits for future stock subscription. Management remains optimistic, forecasting improved margins through cost efficiency strategies over the next five years.
HDPI is a wholly owned subsidiary of HDPM Sin Pte. Ltd., a Singapore-based firm, with its ultimate parent company being Dali Discount AG, headquartered in Switzerland and focused on the Southeast Asian market.
