Malaysia’s Duty Free International – which uses The Zon fascia – saw sales rise by +4.9% in its fiscal second quarter ending August due to improved demand for certain products plus contributions from a new outlet at Klia2, the new low-cost terminal at Kuala Lumpur International Airport.

 

The Klia2 unit only started operations in July but is said by DFI – which claims to be the largest local duty free trading group in Malaysia – to have helped add the extra +4.9% (or MYR 6.4m, $1.97m) to generate sales of MYR 136.7m ($42m) in 2Q FY2015. For the half year, the revenue rise was +5.3% to MYR 265m ($81.5m).

 

Profit for the quarter rose by +62.3% to MYR 12.1m ($3.7m) but in the half year it fell by -82% to MYR 24m ($7.4m) reflecting lost income from discontinuation operations (see below).

 

DFI, has retail outlets at airports, seaports, and an international ferry terminal, as well as at border towns and popular tourist destinations. Locations include Padang Besar, Bukit Kayu Hitam, Langkawi, Penang, Pengkalan Hulu, Rantau Panjang, KLIA, Johor Bahru and others.

 

Last year in March, the group disposed of The Zon Johor Bahru (a hotel complex and ferry terminal business) leaving it with just a small-scale investment holding and other activities (such as golf course and oil palm plantation assets) within its non-duty free business segment.

 

DFI is positioning itself as a DF&TR and hospitality player and is now exploring opportunities outside Malaysia, notably in Singapore but also the wider Asia region.