Business Review FOOD

Cambodia Chinese mainland Hong Kong Macau Singapore The Philippines Cambodia Chinese mainland Hong Kong Macau Singapore The Philippines

Sales for the Food division were US$3.1 billion, down 5% year-on-year. Excluding the impact of the divestment of the Malaysia Food business in 2023 and Hero Supermarket operation in Indonesia, sales for the division was 2% lower than the prior year. Underlying operating profit was US$58 million, up from US$45 million in 2023.

Sales of Goods
US$ 3.1bn
Operating Profit
US$ 58m
Store Network
2,104 stores
‡ Including 1,584 associates and joint ventures stores.
A customer at Wellcome Fresh, The Westwood, Hong Kong

A customer at Wellcome Fresh, The Westwood, Hong Kong

Food division sales were US$3.1 billion, down 5%, while underlying operating profit rose to US$58 million

Reported sales for the Food division in 2024 were US$3.1 billion, down 5% year-on-year. Excluding the impact of the divestment of the Malaysia Food business in 2023 and Hero Supermarket operation in Indonesia, revenue for the division was 2% lower than the prior year. Underlying operating profit for the division was US$58 million for the year, up from US$45 million in 2023.

While increased outbound travel of Hong Kong residents to the Chinese mainland has affected food consumption for the majority of 2024, the situation has begun to normalise with total retail sales of supermarkets in Hong Kong returning to growth in the fourth quarter of 2024. Wellcome saw improving sales momentum in the fourth quarter, with full-year LFL sales marginally below those of the prior year despite challenging trading conditions. Strong in-store execution and effective promotional campaigns have supported consistent market share gain over the course of the year. The Wellcome team has strengthened its omnichannel presence through the wellcome.com.hk website, its app and a quick-commerce partnership with foodpanda, contributing to a more than 20% sales growth in overall Food e-commerce with significantly improved profitability.

South East Asia Food sales performance was adversely affected by intense competition and soft consumer sentiment due to cost-of-living pressures. Improved sales mix, effective cost control and optimisation of the store portfolio led to a meaningful earnings recovery, with Singapore Food turning profitable in the fourth quarter of 2024. The Group continues to serve the Singapore market with different propositions through its various brands.

In June 2024, the Group completed the divestment of its Hero Supermarket business in Indonesia. Post-completion, DFI’s operations in Indonesia have fully pivoted to the Guardian and IKEA businesses.

36 %36 %Group Sales *
15 %15 %Group Profit
*
Sales of goods.
Based on operating profit before effect of adopting IFRS 16, excluding selling, general and administrative expenses and non-trading items.
Market share increase in Hong Kong

Strong in-store execution and effective promotional campaigns have supported consistent market share gain over the course of the year

Phang Mei Yuag, our team member at Giant, serving a customer at Giant IMM Building, Singapore

Phang Mei Yuag, our team member at Giant, serving a customer at Giant IMM Building, Singapore

Wellcome Fresh store in Lei Yue Mun, Hong Kong

Wellcome Fresh store in Lei Yue Mun, Hong Kong

Gao Song at the CS Fresh Kim Yam Road, Singapore store

Gao Song at the CS Fresh Kim Yam Road, Singapore store