Duty Free International (5SO) Q1 2025 earnings summary

Executive summary

• Revenue rose 3.2% YoY to RM38.3m, but operating profit fell 42.9% to RM3.9m and net profit declined 70.4% to RM1.3m.

• Weaker FX results and higher employee costs outweighed lower premises rent and higher other income; the FX swing had a RM3.0m adverse impact on PBT.

Financial highlights

• Revenue was RM38.305m vs RM37.110m YoY; inventories purchased and materials consumed increased 7.8% to RM27.223m.

• Operating profit was RM3.914m vs RM6.858m, down 42.9%; profit before tax was RM2.164m vs RM5.084m, down 57.4%.

• Net profit was RM1.314m vs RM4.436m, down 70.4%; profit attributable to owners was RM1.304m vs RM4.455m.

• Basic and diluted EPS were both 0.11 sen, down from 0.37 sen YoY.

Outlook and guidance

• Retail conditions are expected to remain challenging in FY2025 amid elevated product and operating costs, a weak ringgit, inflation and cautious consumer spending.

• Priorities for the next 12 months include improving operational efficiency, rigorous cost control and adapting business strategies to maintain resilience.