[SINGAPORE] Supermarket and retail store operator DFI Retail Group on Monday (Mar 24) announced the divestment of its Singapore food business to South-east Asian retail conglomerate Macrovalue (Malaysia).
Macrovalue will fully acquire Cold Storage Singapore, which comprises 48 Cold Storage stores (under the Cold Storage, CS Fresh and Jason’s Deli brands), 41 Giant stores, as well as two distribution centres.
The initial purchase price is S$125 million – subject to adjustments, with the transaction expected to complete in the second half of 2025, according to DFI.
Following the divestment, DFI will pivot its focus and resources in Singapore towards the Guardian and 7-Eleven businesses to drive further growth, improved customer experience and enhanced returns.
Scott Price, group chief executive of DFI Retail Group, said that the Guardian and 7-Eleven businesses “hold significant potential for growth”, with DFI sharpening its focus and investment in these businesses.
“In today’s environment of rising food costs and inflation, it is essential to leverage scale and operational efficiencies to protect customers from price volatility while maintaining quality and service standard,” Price added.
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“We firmly believe that Macrovalue is ideally positioned to drive the next phase of growth for the Singapore Food business with its expanded scale and procurement power across both Malaysia and Singapore,” he said. “(It is) uniquely equipped to unlock these efficiencies and deliver greater value to customers – achieving outcomes that would have been more challenging to accomplish for retailers with presence only in Singapore.”
Founded in 2022, Macrovalue is a special purpose vehicle equally owned by Malaysian businessman and entrepreneur Andrew Lim and Gary Yap.
Price expects the transaction to bring about an enhanced product range and more competitive pricing for customers in Singapore.
For financial year 2024, underlying operating profit for DFI’s health and beauty business stood at US$210.8 million, down slightly from US$212.5 million in the prior year. The food business’ operating profit was significantly behind, at US$57.8 million for FY2024, although a rise from FY2023’s US$45.3 million.
Macrovalue on Cold Storage
Macrovalue said it will focus on driving continued growth of the acquired brands.
“We will ensure the continuity of local management and operational teams… As new shareholders, Macrovalue’s existing operations in Malaysia will also be able to support Cold Storage’s operations in Singapore across supply chain and procurement to help improve range and value for our customers,” noted Andrew Lim.
Macrovalue pointed out that the retention of Lim Boon Cheong, DFI Retail Group’s managing director for Singapore Food, is crucial for the growth strategy.
He has played a pivotal role in shaping Cold Storage for more than 30 years, with strong experience in retail and a deep understanding of Singapore consumers.
In 2023, DFI divested its Malaysia food business operated by GCH Retail Group to Macrovalue for an undisclosed sum.
In its latest financial results, the supermarket and retail store operator posted a 29.7 per cent rise in underlying profit to US$200.6 million for its full year ended Dec 31, 2024, from US$154.7 million in the previous corresponding period.
This came even as full-year revenue fell 3.3 per cent to US$8.9 billion from US$9.2 billion in the year-ago period.
However, the group’s net loss – comprising its underlying business performance and non-trading items – for the year stood at US$244.5 million, compared with a net profit of US$32.2 million in the prior year.
The group expects underlying profit to be between US$230 million and US$270 million in 2025, boosted by an organic revenue growth of about 2 per cent.
It also said that it was “particularly optimistic” about the growth prospects for its health and beauty business, which makes up some 55 per cent of its total operating profit.
Shares of DFI were up 0.9 per cent or US$0.02 at US$2.27 before the midday trading break on Monday.
