ASIA PACIFIC. Duty Free International (DFI) has revealed a +20.7% leap in half-year revenues (to 31 August) to RM349.6 million (US$82.9 million). Net profit climbed by +47.1% to RM35.3 million (US$8.4 million).
Second quarter revenues grew by +4.7% to RM157 million (US$37.2 million) with net profit up by 62.1% to RM15.4 million (US$3.6 million). The company runs more than 40 travel retail stores in Malaysia.
DFI said the growth was mainly due to increases in sales volumes, better pricing on certain merchandise and the contribution from new outlets at klia2, the low-cost terminal in Kuala Lumpur.
Executive Director Lee Sze Siang said: “In spite of a challenging year of slower global economic growth, we are pleased to register an improvement in the half-year results. The results once again demonstrate that Duty Free International business is a resilient business. We remain cautious of the challenging operating environment ahead and it’s vital for us to maintain our agility and cost management within the group.”
Lee added: “The priority is to be both growth and value driven despite a challenging operating environment. We continue to seek better opportunities, especially in terms of enhancing our retail outlets and improving our product categories. We will strive to have steady improvement in our core operating margin and build a stronger core business.”
On 5 October, listed company DFI began trading on the Singapore Exchange Mainboard.
“The group sees this as a platform to build a more diverse investor base and further enhance its profile to tap on the capital market to fund future growth,” it said in a statement. Earlier this year, Heinemann Asia Pacific purchased a 10% stake in DFZ Capital Berhad, a wholly-owned subsidiary of DFI, for 19.7 million Euros in cash, with an option to increase its stake by another 15%.
