Dali Everyday Grocery operator faces uncertainty amid mounting losses
Securities and Exchange Commission.
MANILA, Philippines — Hard Discount Philippines Inc., the operator of Dali Everyday Grocery, is facing significant financial challenges that raise doubts about its future, according to a report by Sycip Torres Velayo & Co..
Based on a financial statement filed with the Securities and Exchange Commission (SEC), Hard Discount incurred a net loss of P1.9 billion last year, up from P1.8 billion in 2023.
The company’s cumulative losses resulted in a deficit of P5.23 billion and P3.26 billion as of 2024 and 2023, respectively.
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In addition, according to SGV, the company’s current liabilities exceeded its current assets by P134.6 million as of 2024 and it has negative operating cash flows of P534.8 million in 2023.
“These conditions indicate that a material uncertainty exists that may cast significant doubt of he company’s ability to continue as a going concern and, therefore, the company may be unable to realize its assets and discharge its liabilities in the normal course of business,” SGV said.
SGV, however, said additional capital was already infused by the stockholders amounting to P7.5 billion and P4.6 billion as at December 31,2024 and 2023, presented as deposit for future stock subscription.
Hard Discount Philippines Inc. 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, meanwhile, forecasts that profit margins will improve over the next 5 years due to the implementation of cost efficiency measures.
“Management believes that 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,” SGV said.
The company posted a total revenue of P33.9 billion in 2024, up from P22.31 billion in 2023. Its gross income amounted to P3.3 billion from P1.4 billion.
