The operator of discount grocery chain Dali Everyday Grocery returned to a P1.03 billion capital deficit in 2025, as mounting losses prompted its auditor to flag uncertainty about its ability to continue as a going concern.
Hard Discount Philippines Inc. posted a P1.83-billion net loss last year, narrower than the previous year’s P1.97 billion, despite sales climbing 52.29 percent to P51.66 billion.
Accumulated losses reached P7.07 billion, up 34.92 percent from P5.24 billion in 2024.
Its current liabilities also exceeded current assets by P1.19 billion, compared with P134.6 million a year earlier.
Auditor SyCip Gorres Velayo and Co. said these conditions indicated a ‘material uncertainty’ that could cast significant doubt on the company’s ability to continue as a going concern.
‘These conditions indicate that a 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. Our opinion is not modified in respect of this matter,’ the auditor said.
The company ended 2024 with positive equity of P728.76 million after receiving a P4-billion deposit for future stock subscription.
Last year’s losses pushed it back into a capital deficit. Still, the grocery operator improved its margins. Cost of goods sold increased 49.21 percent to P45.65 billion, slower than revenue growth.
Consequently, gross income rose 80.51 percent to P6.01 billion, lifting its gross profit margin to 11.64 percent from 9.82 percent.
Operating expenses climbed 47.69 percent to P7.1 billion, although their share of revenue declined to 13.75 percent from 14.17 percent. Other charges increased 45.63 percent to P626.98 million. Loss before income tax narrowed 10.14 percent to P1.71 billion.
Hard Discount ended 2025 with total assets of P25.41 billion, up 21.17 percent, while total liabilities grew faster, up 30.63 percent to P26.44 billion.
Current assets totaled P6.62 billion, including P1.45 billion in cash and P3.99 billion in merchandise inventories. Current liabilities reached P7.81 billion, mostly trade and other payables of P7.04 billion.
Right-of-use assets worth P12.03 billion and property and equipment of P6.29 billion accounted for most of its P18.79 billion in non-current assets. Non-current liabilities stood at P18.64 billion, led by P12.32 billion in lease liabilities and P5.23 billion in deposits for future stock subscriptions.
Separately, parent company HDPM Sin Pte. Ltd. provided a P573.8-million loan in August 2025 for general corporate purposes
Hard Discount also received a P1.67-billion cash infusion from the parent during the year.