Hard Discount Philippines Inc., the operator of Dali Everyday Grocery, incurred a net loss of P1.9 billion in 2024, wider than the P1.8 billion loss in 2023, according to a report by auditing firm Sycip Torres Velayo & Co. (SGV).
The company posted total revenue of P33.9 billion in 2024, up from P22.31 billion in 2023. Its gross income amounted to P3.3 billion, up from P1.4 billion, based on financial statement filed with the Securities and Exchange Commission (SEC).
SGV said Hard Discount’s cumulative losses resulted in a deficit of P5.23 billion and P3.26 billion as of the end of 2024 and 2023, respectively.
It said the company’s current liabilities exceeded its current assets by P134.6 million in 2024, and it had negative operating cash flows of P534.8 million in 2023.
“These conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern,” SGV said.
“Therefore, the company may be unable to realize its assets and discharge its liabilities in the normal course of business,” it said.
SGV noted, however, that the company’s stockholders had infused additional capital of P7.5 billion and P4.6 billion as of Dec. 31, 2024 and 2023, presented as a deposit for future stock subscription.
Hard Discount Philippines is a wholly-owned subsidiary of Singapore-based HDPM Sin Pet. Ltd. Its ultimate parent company is Switzerland-based Dali Discount AG. Other notable shareholders include the Asian Development Bank and private equity firms Creador, Navegar and Venturi Partners.
Hard Discount forecasts that profit margins will improve over the next five years due to the implementation of cost efficiency measures.
“Management believes that with the projected improvement in net profit margin, the company will be able to generate sufficient cash flows from its operations to meet obligations as and when they fall due,” according to the SGV report.
