HARD Discount Philippines Inc. (HDPI), operator of DALI Everyday, widened its loss to P1.88 billion in 2023 from P894.68 million in 2022.
In a regulatory filing, HDPI reported a 125-percent increase in revenues last year to P22.31 billion from P9.91 billion in 2022.
Since opening its first store in February 2020, HDPI has accumulated a capital deficit of P1.29 billion, attributed to successive losses, prompting capital infusion from various investors worth P4.67 billion as of last year.
Multilateral lender Asian Development Bank (ADB) last month announced investing $10 million into HDPI to finance its store and distribution centers expansion. This is on top of a $15 -million investment ADB made last year, also for store and distribution network expansion and for cold chain infrastructure.
HDPI is owned by Switzerland-based Dali Discount AG, private equity firm Creador, Navegar and Venturi Partners.
HDPI said direct parent Singapore-incorporated HDPM Sin Pte. Ltd. has committed to provide the necessary finances when necessary to enable business continuity and liabilities when it falls due.
HDPI likewise said it expects profit margins to improve in the next five years as it works on cost efficiency measures.
“Management believes with the planned increase in equity, the commitment of and continued financial support from the parent company and 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,” HDPI said in the filing.
DALI Everyday Grocery opened its first store in February 2020 in Sta. Rosa, Laguna and aims to grow its store network to 950 by yearend.
Meanwhile, consumer group Malayang Konsyumer (MK), has called on the Food and Drug Administration (FDA) to take action against DALI for alleged violation of labeling regulations mandated by the Department of Health (DOH).
MK in a letter to the FDA said it received complaints alleging some products sold in the store do not bear specific names of the manufacturers and importers.
MKI said this is in violation of the provisions of DOH Circular No. 2014-0030 or the Revised Rules And Regulations Governing The Labeling of Prepackaged Food Products Further Amending Certain Provisions of Administrative Order No. 88-B s. 1984 or the Rules and Regulations Governing the Labeling of Pre- packaged Food Products Distributed in the Philippines.
Simoun Salinas, spokesperson of MK, in a statement, said Section VI A.5 mandates “the name and address of the manufacturer, repacker, packer, importer, trader or distributor of the food shall be declared on the label.”
In the letter, Salinas also inquired on the status of yet another complaint alleging an unregistered food product being sold in DALI stores, the “Dali Foods Lemon Cake.”
Salinas pointed out that in FDA Advisory No. 2021-0375 or the “Public Health Warning Against the Purchase and Consumption of the Following Unregistered Food Products,” Dali Food Lemon Cake was “listed as unregistered.”
DALI has been the subject of several complaints in the past, including an intellectual property rights violation case filed by a local condiments manufacturer as well as alleged questionable sales practices.
