Duty Free International (5SO) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue rose 89.9% YoY to RM61.1m, primarily reflecting RM47.9m from the automotive components business acquired in October 2025; lower duty-free sales partly offset the increase.

• Profit before tax fell 35.4% to RM1.5m and net profit fell 74.8% to RM0.4m, as lower duty-free contribution and interest income outweighed the new manufacturing contribution.

Financial highlights

• Revenue was RM61.126m versus RM32.195m; inventories purchased and materials consumed rose 6.5% to RM28.794m.

• Profit before tax was RM1.473m versus RM2.281m; net profit was RM0.363m versus RM1.443m, including RM0.152m attributable to owners and RM0.211m to non-controlling interests.

• Basic and diluted EPS were each 0.01 sen versus 0.12 sen in the prior-year quarter.

• Other income declined 76.2% to RM0.746m, mainly due to lower interest income and the absence of a prior-period inventory write-down reversal.

Outlook and guidance

• FY2027 manufacturing and retail conditions are expected to remain challenging amid elevated inflation, higher operating and product costs, cost-of-living pressure and cautious consumer spending.

• Duty-free revenue and profitability are expected to be adversely affected over the next 12 months following outlet closures in the prior-year fourth quarter.

• Manufacturing priorities include pursuing EV and hybrid collaborations, technical partnerships and expanded capabilities, alongside cost controls and operational efficiency measures.