Malaysian duty free retail company Duty Free International (DFI) which trades as ‘the Zon’, has reported that the ’volatility’ of the Malaysian Ringgit (MR) against the US dollar ‘is expected to remain challenging’ into its last quarter ending 29 February 2016.

 

The listed operator generated total sales up 12.5% to nearly MR153m ($34.9m) in its third quarter, with this growth due mainly to a rise in demand and higher selling prices for certain products, plus seven new retail outlets at Kuala Lumpur International Airport 2 (KLIA 2).

 

[The first of these stores commenced operation in July 2014, with the remaining six opening in stages in November 2014, January 2015 and August 2015-Ed].

 

 

At the same time, the group reported profit before income tax of MR55.8m ($12.6m) for the first nine months of fiscal year 2016, representing an increase of 15.7% or MR7.6m ($1.7m) as compared to MR48.2m ($10.9m) recorded over the same period a year prior.

 

DFI said that the increase in profit was mainly due to the increase in revenue, with the favourable impact partially offset by a net foreign exchange loss of MR6.7m ($1.5m) as compared to the MR1m ($0.2m) net foreign exchange gain in the first nine months of fiscal 2015.

 

As Malaysia’s largest local duty free retailer, DFI says the company aims to improve its operational efficiency further, whilst building both its product range and services to maintain its competitive and profitable status.

 

Currently, DFI claims to operate 36 retail outlets (34 duty free/two duty paid P&C) at all of the country’s entry and exit points in Peninsular Malaysia, including airports, seaports, downtown, border towns and popular tourist destinations.