Duty Free International (5SO) H1 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 7.9% YoY to RM75.5m, but results swung to a RM1.8m net loss, mainly reflecting RM6.3m unrealised FX losses.

• Core duty-free and non-dutiable trading remained profitable, with H1 operating profit of RM4.5m versus RM3.3m a year earlier.

Financial highlights

• H1 revenue increased 7.9% YoY to RM75.5m; operating profit fell 71.3% to RM3.2m.

• H1 pretax loss was RM0.2m versus RM7.7m profit; net loss was RM1.8m versus RM6.0m profit, and basic EPS was -0.16 sen versus 0.50 sen.

• Q2 revenue rose 13.2% YoY to RM37.2m, while the quarter recorded a RM2.4m pretax loss versus RM2.6m profit.

• H1 operating cash flow was RM2.1m versus RM10.8m; cash and cash equivalents ended at RM157.3m.

Outlook and guidance

• Retail conditions are expected to remain challenging through FY2025 amid rising product and operating costs, inflation and cautious consumer spending.

• Priorities include tighter cost controls, operational efficiency and pursuing business opportunities that complement existing operations.

• The proposed Johor serviced-apartment development is not expected to materially affect FY2025 EPS or net tangible assets per share.