Duty Free International (5SO) H2 2025 earnings summary

Executive summary

• FY2025 revenue was RM155.1m, down 1.4% YoY; net profit rose to RM53.7m from RM14.0m, primarily reflecting RM69.6m compensation for compulsory land acquisition.

• Excluding items related to the Bukit Kayu Hitam acquisition, core operations remained profitable, with operating profit of RM11.1m versus RM14.2m in FY2024.

Financial highlights

• FY2025 PBT increased to RM57.5m from RM18.0m; Q4 PBT was RM15.1m versus RM7.1m, aided by lower professional costs and employee expenses in Q4.

• FY2025 Q4 revenue declined 20.9% YoY to RM38.4m, mainly after the Bukit Kayu Hitam outlet closed in November 2024.

• FY2025 employee benefits expense rose 29.1% to RM19.9m; other operating expenses increased 94.2% to RM24.5m, including higher management and professional fees and asset write-offs.

• FY2025 basic and diluted EPS were 4.47 sen, versus 1.17 sen in FY2024.

Outlook and guidance

• The Bukit Kayu Hitam closure is expected to adversely affect revenue and profitability in FY2026; cost control, operational efficiency and resource allocation remain priorities.

• The joint development is expected to commence in Q3 2025, subject to approvals; the Group expects it to create new revenue streams and enhance its asset portfolio and core operations.

• Management cited a challenging retail environment from rising product and operating costs, inflation and cautious consumer spending, while continuing to seek business opportunities.