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MALAYSIA. Duty Free International, parent company of The ZON Duty Free, recorded a +15.7% increase in revenues in the third quarter of its financial year. However, rising rental costs, including at its airport outlets, meant it only saw small growth in profits.
The company, which is listed in Singapore, recorded revenues of RM132.9 million (US$40.8 million) in the three months to the end of November. It said the growth was largely attributable to its core duty free segment, adding: “The increase was mainly due to higher demand for certain products as a result of competitive pricing.”
Profits before income tax from continuing operations were up +1.7% to RM22.7 million (US$7 million), with most of the revenue growth offset by increases in rental and professional fees.
This included RM1 million (US$0.3 million) at Penang International Airport, where it commenced operations in January 2013, and a RM0.9 million (US$0.3 million) increase at Kuala Lumpur International Airport as a result of improved sales.
Looking ahead, the company said: “The group will continue to manage its business risks prudently and continue to pursue its strategies of improving operational efficiencies, as the operating environment is expected to remain challenging in the next twelve months.”
Duty Free International currently has stores at airports, borders and downtown locations across Malaysia, as well as in duty free zones and sea ports and on duty free islands. They are all operated under The ZON brand. It also has a hospitality services business.
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