Duty Free International (5SO) Q3 2025 earnings summary

Executive summary

• 9M FY2025 revenue rose 7.3% YoY to RM116.7m; profit before tax reached RM42.4m, boosted by RM69.6m compulsory land acquisition compensation.

• Duty-free trading remained profitable, with RM4.1m operating profit before acquisition-related items, versus RM4.3m a year earlier.

Financial highlights

• Q3 FY2025 revenue increased 6.3% YoY to RM41.2m; 9M revenue rose 7.3% to RM116.7m.

• Q3 net profit was RM41.6m versus RM2.5m; 9M net profit was RM39.8m versus RM8.5m, substantially reflecting the land compensation.

• Q3 profit before tax was RM42.6m versus RM3.3m; 9M was RM42.4m versus RM10.9m.

• Q3 basic EPS was 3.47 sen versus 0.20 sen; 9M basic EPS was 3.32 sen versus 0.71 sen.

• 9M operating cash flow was RM15.2m versus RM22.1m; cash and cash equivalents ended at RM245.1m.

Outlook and guidance

• Retail conditions are expected to remain challenging through FY2025 amid rising product and operating costs, inflation and cautious consumer spending.

• Bukit Kayu Hitam outlet closure is expected to adversely affect revenue and profitability; priorities include cost control, efficiency and seeking suitable new duty-free premises.

• The proposed Johor joint development is not expected to materially affect FY2025 net tangible assets per share or EPS.