SINGAPORE. Duty Free International (DFI) recorded a -24.1% decrease in net profit to RM15.1 million (US$3.5 million) in the first quarter of 2018.
Revenue for three months ended 31 May was down -13.1% to RM167.5 million (US$39 million). DFI attributed the decrease to “customers’ lower demand in certain products as well as the Malaysian government’s imposition of Goods and Services Tax at border outlets and duty free zones with effect from 1 January 2017”.
The company reported a profit before income tax of RM22 million (US$5.1 million) for the quarter, which was -12.5% lower year-on-year. The result was affected by a net loss in foreign exchange of RM6 million (US$1.4 million) in the quarter compared to a net foreign exchange gain of RM1.4 million (US$326,000) the year before.
However, a decrease in transportation cost of RM1.4 million (US$326,000) and a recognition of gain from changes in fair value of option of RM6 million (US$1.4 million) partially offset the negative effects.
Looking at the future outlook, DFI said its operating environment would remain challenging with the volatile US Dollar – Malaysian Ringgit exchange rate, rise of inflationary cost and weak consumer purchasing sentiment.
“The group will continue its efforts to identify new business and market opportunities by capitalising on its balance sheet strength and continue its strategies on strengthening operational efficiency while closely monitoring costs, so as to remain competitive and profitable for the remaining quarters of the financial year ending 28 February 2018,” the company said.
