MALAYSIA. Duty Free International has reported a +4.6% year-on-year increase in group turnover in FY2017, to RM632.6 million (US$148.5 million).
The Malaysia-based company said EBITDA was up +13.6% to RM104.6 million (US$24.5 million), while profit before tax increased +15.7% to RM97.8 million (US$22.9 million).
The increase in profit was largely due to forex gain, an increase in sales volume generated from the company’s outlets, and an improvement in the pricing of some merchandises, according to Non-Executive Chairman Adam Sani Abdullah.
Duty free revenue was up +4.67% to RM631.02 million (US$148 million), accounting for the vast majority of the company’s overall revenue.
“The business environment in FY2017 was challenging for DFI, with the slowdown in the economy brought on by low oil prices and subdued global trade,” said Abdullah in the company’s 2017 annual report. “Currency fluctuations against the Malaysian Ringgit, the rise of inflationary cost and weaker consumer purchasing sentiments had an effect on our FY2017 financial performance.
“Nevertheless, there are some expectations of an improvement in Malaysia’s export-led economy this year, with a pickup in global trade and higher fixed investment due to higher oil prices and better-than-expected performance in major economies, particularly the USA, China, Japan and certain European countries.
“Despite the sluggish pace of the economy in FY2017, DFI’s business continued to be stable and profitable.”
Assessing the outlook for the company, Abdullah noted that global uncertainties, such as a volatile Malaysian Ringgit against the US Dollar, weak consumer sentiment on the back of a rising inflationary environment and natural disasters like the flood situation in Thailand would continue to present a “challenging business environment”.
DFI remains poised and ready for a competitive year ahead, he said. “Our efforts in enhancing operational efficiency, cost management, intensifying marketing strategies and managing business risks prudently will continue, as well as continuous upgrade and improvement of our retail outlets and product assortments to attract more customers.
“Along with recent corporate actions including share placements, the group’s financial standing has also strengthened and put us in a better position to consider opportunities for business expansion as well as other opportunities within the Asian market.”
