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Duty Free Share buyback and Berjaya Waterfront

Duty Free International is back in black with 165% increase in earnings for 1HFY22

Duty-free retailing group Duty Free International has reported a 165% rise in earnings to RM3.5 million in its 1HFY2023 ended Aug 31, compared to a RM5.4 million loss in the same period a year before.

Revenue for the company in 1HFY2023 rose 29.7% to RM59.1 million, compared to RM45.6 million in 1HFY2022.

Duty Free explained the increase in profit was mainly contributed by higher revenue, along with a higher other operating income of RM1.4 million.

This arises from a net reversal of inventories written down and deposit forfeited, as well as a higher net foreign exchange gain of RM0.8 million.

However, the positive effect was partially offset by higher other operating expenses of RM2.5 million, higher rental fees of RM1.4 million, as well as higher professional fees of RM0.5 million.

For its 2QFY2023, Duty Free also revealed that the higher revenue was mainly because all of the its retail outlets were in full operations.

This is in contrast to last year, when the Malaysian government imposed the Full Movement Control Order (FMCO) which started on Jun 1, 2021, resulting in none of Duty Free&rsquo s retail outlets being in operations during the FMCO period.

In its outlook statement, the company notes that the Malaysian economy registered a strong growth of 8.9% in the second quarter of 2022, and key economic sectors continued to expand in the second quarter of 2022.

Duty Free points out, &ldquo consumer-related subsectors such as retail and leisure-related activities continued to recover amid the transition to endemicity, reopening of international borders, improving labour market conditions and the additional support from the Malaysian Government.&rdquo

However, the company is of the view that the rise of global inflation rates and rising operating costs and disruptions in supply chains have impacted the economic recovery rate.

This is brought on by the ongoing geopolitical tensions and the prevailing Covid-19 restrictions in certain Asian countries, especially China.

As such, Duty Free expects the business environment in which it operates to remain challenging, but is also &ldquo cautiously optimistic&rdquo that its operations and financial performance will gradually improve for the remaining period of the financial year ending 28 February 2023.

nice baby ...trending up..

Added some share and averaged at dead bottom at 0.08 in June 2021 so happy to see it flying everyday

josemmm123 ( Date: 08-Jun-2021 09:05) Posted:

used to be 45 cents stock last time. Many supporters last time, some bought from 30 to 50+ cents.

Wonder what happens to them

Changed its business now into mass production of printed circuit boards on contract manufacturing business may pick up slowly if old business gets back into shape

Joelton ( Date: 25-Jun-2020 16:18) Posted:

Duty Free International posts net loss of RM9.1m for Q4

MALAYSIAN multi-channel duty-free and duty-paid retail group Duty Free International posted a net loss of RM9.1 million (S$3 million) for its fourth quarter ended Feb 29, 2020, reversing its net profit of RM10 million previously. But the group said in its statement that it has " ample liquidity to weather through Covid-19 challenges" .

Revenue of RM169.7 million was recorded for the quarter, up 1.3 per cent from RM167.5 million, mainly contributed by Brand Connect Group as well as by a slight increase in revenue from the trading of duty-free goods and non-dutiable merchandise.

Loss per share for the quarter amounted to 0.76 sen, versus earnings per share of 0.82 sen previously.

For the full year, net profit stood at RM10.9 million, down 76.6 per cent from RM46.5 million a year ago. Revenue was RM617.2 million, up 10.9 per cent from RM556.3 million previously.

The group' s total equity stood at RM557.4 million as at Feb 29, 2020 on the back of positive operating cash flow and net cash generated from investment activities. During FY2020, the group generated positive operating cash flow of RM40.3 million. Net cash generated from investing activities was RM38.3 million, mainly due to proceeds from the investment in the medium-term note.

Net cash used in financing activities for FY2020 of RM54.2 million was primarily attributable to dividends paid to shareholders. A capital reduction and cash distribution amounting to approximately RM128.9 million was distributed to the shareholders on May, 13 2020. After the distribution, the cash and cash equivalents stood at RM196.3 million, enabling the group to " weather through the challenging operating environment" .

The group said that its operations were adversely impacted by Malaysia' s movement control order, which was implemented to contain the spread of the novel coronavirus. Even with the gradual easing of measures, certain restrictions such as closure of international borders and overseas travel restrictions are still in place. Likewise, its operations in Singapore have also been hurt by virus safety measures.

To mitigate the adverse financial impact in the next 12 months, the group embarked on a cost-cutting drive by reducing the use of casual labour, clearing leave, deferring discretionary expenses and non-critical capital expenditures, lowering human-resource costs and closing its non-profitable outlets before the end of the second quarter of FY2021.

The group said in its statement: " The outlook for the coming financial year is expected to be very challenging and highly uncertain due to the global economic crisis, travel restrictions, consumers&rsquo cautious spending and, more importantly, the unpredictable duration of the global Covid-19 pandemic with no clear indication when the duty free industry will be able to recover from it."

https://www.businesstimes.com.sg/companies-markets/duty-free-international-posts-net-loss-of-rm91m-for-q4