Duty Free International (5SO) H1 2026 earnings summary

Executive summary

• H1 FY2026 revenue was broadly flat YoY, while pre-tax profit and net income returned to positive territory, chiefly as unrealised FX losses fell sharply.

• Q2 revenue rose 14.5% YoY; the Bukit Kayu Hitam outlet closure continued to weigh on performance, partly offset by stronger customer demand.

Financial highlights

• H1 revenue was RM74.8m, down 0.9% YoY; profit before tax was RM6.4m versus a RM0.2m loss, and net profit was RM4.1m versus a RM1.8m loss.

• Q2 revenue increased 14.5% to RM42.6m; profit before tax was RM4.2m versus a RM2.4m loss, and net profit was RM2.6m versus a RM3.2m loss.

• H1 other income fell 12.1% to RM5.1m; lower bank and Berjaya Waterfront interest income partly reflected the comparison period.

• H1 employee benefits expense declined 18.3% to RM6.2m; professional fees increased to RM1.4m from RM0.6m due to corporate exercises.

Outlook and guidance

• Retail conditions are expected to remain challenging through FY2026 amid rising product and operating costs, inflation, cautious consumer spending and the Bukit Kayu Hitam outlet closure.

• Planned responses include tighter cost control, optimized resource allocation and strategic planning; the proposed automotive components acquisition is expected to add a stable revenue stream, subject to completion.