HARD DISCOUNT Philippines, Inc. (HDPI), the operator of DALI Everyday Grocery, widened its net loss by 5% to P1.97 billion in 2024 from P1.88 billion in 2023 as mounting liabilities and higher expenses weighed on its operations.
Revenue rose by 52.1% to P33.93 billion in 2024 from P22.31 billion in 2023 due to higher sales, DALI said in its audited financial statement for the year. Gross income also increased by 124% to P3.33 billion.
Cost of sales grew by 46.9% to P30.59 billion, while operating expenses climbed by 60% to P4.81 billion.
HDPI said its total assets rose by 70% to P20.97 billion. However, total liabilities also surged by 110.8% to P20.25 billion.
Current liabilities, which reached P5.96 billion, exceeded current assets of P5.82 billion.
Total equity fell by 73% to P728.76 million after the company’s deficit widened by 60% to P5.24 billion.
HDPI’s independent auditor SyCip Gorres Velayo & Co. (SGV) noted that the P5.24-billion deficit and higher current liabilities might cast doubt on the company’s viability.
“These conditions indicate that material uncertainty exists that may cast significant doubt on the 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 in its independent auditor’s report attached to the audited financial statement.
However, HDPI said it expects profit margins to improve over the next five years with 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 its obligations as and when they fall due,” it said.
The company also noted that stockholders had infused P7.56 billion in additional capital as of end-2024, recorded as deposits for future stock subscriptions, to support its operations.
HDPI is a subsidiary of Singapore-incorporated HDPM Sin Pte. Ltd., which focuses on the Southeast Asian market. The ultimate parent of HDPI is Switzerland-based Dali Discount AG. — Revin Mikhael D. Ochave
