MALAYSIA. Duty Free International has reported revenue growth of +9.0% in the first nine months of FY2017, to RM482.6 million (US$108.5 million).
Profit before income tax was up +30.3% to RM72.8 million (US$16.3 million). The improvement was mainly due to a net gain in foreign exchange of RM11.4 million (US$2.6 million) compared to a RM6.7 million (US$1.5 million) net loss in foreign exchange for the same period last year.
The net gain was partly offset by higher rental expenses of RM4.0 million (US$899,000) and employee benefits expenses of RM3.7 million (US$832,000), Duty Free International said.
The company also recorded a +41.2% net profit increase, to RM57.5 million (US$12.9 million).
In the third quarter, revenue fell -13% to RM133 million (US$29.9 million), which Duty Free International attributed to the effects of a slowdown of tourism traffic to and from Thailand following the demise of King Bhumibol in October 2016.
Profit before income tax increased +21.2% to RM26.3 million (US$5.9 million) due to a net gain in foreign exchange of RM9.6 million (US$2.2 million) in the quarter compared to a net loss in foreign exchange of RM2.2 million (US$494,000) in the year-before period.
Net profit rose +32.9% to RM22.3 million (US$5 million).
“We will continue to focus on our cost management by improving the efficiency of our operations and managing the risks involved in this business, as a strategy to overcome the competitive and challenging business environment,” commented Duty Free International Executive Director Lee Sze Siang.
Heinemann Asia Pacific took an initial 10% stake in Duty Free International last year.
