Duty Free International Limited (DFI) has revealed Group revenue slipped by 12.2% to RM388.8m (US$95m) in the nine months ending 30 November 2018 (9m 2019).

Net profit after tax and net profit attributable to the owners grew by 10.9% and 12.9% to RM40.7m ($9.7) and RM36.6m, respectively.

“This was mainly due to the net foreign exchange gain of RM6.8m in 9M2019, compared to a net foreign exchange loss of RM13.3m in 9M2018,” read a statement. “The net foreign exchange gain was attributable to the weakened Malaysian ringgit against the Singapore dollar and US dollar for the period under review.”

Total borrowing for the period 28 February to 30 November dipped from RM16.4m to RM4m, with the Group in a ‘positive’ working capital position of RM454.7m as of 30 November.

OUTLOOK ‘CHALLENGING’

Group revenue in the third quarter surged by 19.3% to RM157m, which the company attributes to a rise in demand for certain products and its overall sales mix.

DFI is Malaysia’s largest multi-channel duty free and duty paid provider, serving international and domestic customers through its ZON-branded retail outlets.

Its presence covers more than 40 operations across Malaysia’s peninsular, including at international and domestic airports, seaports, duty free zones, border shops, islands and other tourist destinations. This includes operations in Langkawi, Penang and Kuala Lumpur.

Customers can shop from a variety of premium brands such as imported duty free beverages, tobacco, confectionery, perfumes & cosmetics and souvenirs at its stores.

In 2018, DFI full-year revenue reached RM620.1m with EBITDA at RM74.8m and profit after tax of RM48.2m.

The Group expects this year’s operating environment to ‘remain challenging’ given the forecast economic outlook combined with tighter consumer spending.

The statement added: “The Group will continue its efforts to identify new market opportunities and strategies to further strengthen its customer base and distribution channels through a wider product offering.

“The Group will also intensify marketing efforts and closely monitor key cost drivers to remain competitive and profitable for the remaining quarters of the financial year ending 28 February 2019.”