Dali posts P1-billion capital deficit amid rapid expansion

Hard Discount Philippines Inc., the operator of discount grocery chain Dali Everyday Grocery, posted a capital deficit of P1.03 billion at the end of 2025, five years into its commercial operations in the country.

According to its 2025 financial statement, Hard Discount ended last year with total assets worth P25.41 billion against total liabilities of P26.44 billion.

These were higher compared to P20.97 billion in assets and P20.24 billion in liabilities a year earlier.

With this, the company's auditor, Sycip Gorres Velayo and Co., said, "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."

Throughout its five-year operations, Hard Discount’s cumulative losses reached P7.07 billion, reflecting a 34.92% increase from the P5.24 billion accumulated through 2024.

In 2025 alone, the company’s annual net loss narrowed by 7.05% to P1.83 billion, compared to P1.97 billion recorded the prior year.

Nonetheless, Hard Discount said net losses are expected and directly aligned with the early stages of a large-scale expansion strategy.

To achieve long-term profitability through economies of scale, the company is planning to build more stores while applying strict cost-efficiency measures.

In August 2025, Hard Discount received a P573.8-million loan from its mother company HDPM Sin Pte. Ltd., it used for general corporate purposes.

It also received a cash infusion of P1.67 billion from HDPM Sin Pte. Ltd. last year. — VDV, GMA News