Discount Retail Chain DALI Everyday Grocery reduced its losses in 2025 after a sharp jump in revenue, though rising merchandise costs and operating expenses continued to weigh on the bottom line.
Regulatory filings with the Philippine SEC show the company’s net loss narrowed to 1.83 billion pesos ($30 million) in 2025 from 1.97 billion pesos ($32 million) the previous year. Loss before tax reached 1.71 billion pesos ($28 million).
DALI, backed by Creador, Venturi Partners, and the Asian Development Bank, runs a fast‑growing chain of hard‑discount grocery stores offering low‑priced essentials in neighborhood locations.
The company’s improving net loss came as sales soared 52% to 51.66 billion pesos ($840 million), surpassing the 50‑billion‑peso mark for the first time. In 2024, sales totaled 33.93 billion pesos.
Cost of sales climbed nearly in tandem, rising 49% to 45.65 billion pesos, reflecting heavier inventory purchases as the retailer scaled up. DALI bought 46.6 billion pesos worth of inventories in 2025, up from 32 billion pesos, and wrote off 488.9 million pesos in damaged or shrunken stock—more than double the prior year’s figure.
After inventory costs, gross income almost doubled to 6.02 billion pesos, lifting gross margin to 11.6% from 9.8%.
However, the stronger gross profit was not enough to offset a significantly larger operating cost base. Operating expenses jumped 47.6% to 7.1 billion pesos, driven mainly by higher personnel costs, which rose to 2.91 billion pesos. DALI’s rapid store expansion also pushed lease‑related amortization to 1.01 billion pesos, up from 722.1 million pesos.
DALI said it plans to maintain its aggressive rollout pace. The chain expanded its footprint by 30% in 2025, ending the year with 1,181 stores, up from 888. The company reported serving more than one million customers per day.
Despite strong growth, filings show DALI continues to rely on shareholder support. Auditor SGV & Co. flagged a “material uncertainty” as current liabilities exceeded current assets by 1.19 billion pesos at year‑end.
DALI noted it remains in the early phase of large‑scale expansion, with losses expected as it builds scale. The company said it has established a stable customer base and supplier network to support continued growth.
Earlier reporting by DealStreetAsia revealed that DALI has been exploring a major new fundraising round. Germany’s Aldi was in advanced talks to acquire a strategic stake in a deal potentially exceeding $100 million, while other investors—including GIC, General Atlantic, and existing shareholders—also expressed interest. Discussions remain ongoing.
DALI and Aldi share a similar hard‑discount model emphasizing tight operations, limited assortments, private labels, and lean store formats. In the Philippines, DALI competes with O!Save, a venture between Robinsons Retail Holdings and HD Retail Holding of the Gokongwei Group.
DALI trims 2025 losses as revenue tops $840m, costs remain a drag
DALI trims 2025 losses as revenue tops $840m, costs remain a drag
Discount Retail Consulting