Duty Free International (5SO) H2 2026 earnings summary

Executive summary

• FY2026 revenue rose 37.1% to RM212.6m, driven by the October 2025 automotive manufacturing acquisition; profit before tax and net income declined as FY2025 included a large one-off land-acquisition compensation.

• Duty-free operations faced outlet closures in Johor Bahru and Langkawi, while the acquired automotive business contributed RM72.5m revenue and RM7.5m net profit after tax for November 2025–February 2026.

• Strategy shifted toward higher-value automotive components manufacturing, alongside disciplined costs, cash preservation and a focus on operational efficiency.

Financial highlights

• Revenue was RM212.6m, up 37.1% YoY from RM155.1m; acquired automotive operations contributed RM72.5m from the acquisition date.

• Profit before tax fell to RM35.4m from RM57.5m; net profit was RM22.2m versus RM53.7m, partly reflecting the prior-year RM69.6m land compensation.

• FY2026 included a RM23.3m gain on lease termination; closures also incurred employee termination costs and asset write-offs.

• Basic and diluted EPS were 1.82 sen, down from 4.47 sen; EBITDA before exceptional items was RM55.2m versus RM75.9m.

Outlook and guidance

• The business environment is expected to remain challenging; the automotive acquisition is expected to support future performance, while retail faces tourism, currency and consumer-sentiment volatility.

• Automotive and retail operations are expected to face rising operating costs and changing consumer spending; management is focused on cost optimisation, efficiency and new opportunities.

• Malaysia’s economy is projected to remain resilient in 2026, but external demand faces global trade uncertainty; automotive industry outlook points to a potential marginal decline in TIV.