Hard Discount Philippines Inc., (HDPI) the owner and operator of DALI Everyday Grocery, continues to face financial challenges after three years of operations in the Philippines.
The company booked P1.88-billion net loss in 2023, marking a 110-percent increase from P894.68 million in 2022, based on the latest financial report it filed with the Securities and Exchange Commission (SEC).
Revenues surged 125 percent to P22.31 billion from P9.19 billion the previous year.
HDPI, however, reassured stakeholders that its parent company remains committed to providing necessary financial support to ensure business continuity and meet obligations as they arise.
HDPI anticipates improving profit margins over the next five years through enhanced cost-efficiency measures and increased equity.
It said DALI Everyday Grocery remains focused on expanding its store network to 950 locations by the end of 2024 despite these challenges, following its initial store opening in February 2020 in Santa Rosa, Laguna.
DEG, the investment arm of German state-owned development bank KfW, committed to investing $8.4 million in DALI stores in the Philippines.
The Asian Development Bank signed an equity investment of $15 million in DALI Hard Discount in May 2023 to expand its network of retail stores and distribution centers and cold chain infrastructure in the Philippines.
DALI is pioneering hard discount retailing in the Philippines by strategically locating in rural and peri-urban areas, rather than in upscale urban centers.
The approach enables DALI to maintain low product prices by achieving high sales volume with limited product selection and lean operations.