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Profit jump for Duty Free International

Both second-quarter and half-year (to August 31) net profit has jumped for Malaysia’s Duty Free International (DFI).

Second-quarter profit shot up by 63 per cent to RM15.4 million (US$3.6 million) with a 4.7 per cent rise in revenue to RM157 million, while half-year profit rose 47 per cent to RM35.3 million on the back of 20.7 per cent revenue growth to RM349.6 million.

Malaysia’s largest multi-channel duty-free and duty-paid retail group, Singapore-listed DFI has more than 40 retail outlets.

DFI says its growth is primarily the result of increased sales volumes, improved pricing of certain merchandise and the contribution from new outlets at Kuala Lumpur International Airport 2 (KLIA 2).

The group’s profit before tax for the second quarter was RM21.4 million, a 46.6 per cent increase from the same period a year ago.

“In spite of a challenging year of slower global economic growth, we are pleased to register an improvement in the half-year results,” says executive director Lee Sze Siang. “We remain cautious of the challenging operating environment ahead, and it’s vital we maintain our agility and cost management.”

Heinemann Asia Pacific, a wholly owned subsidiary of Gebr Heinemann SE, this year bought a 10 per cent stake plus one share in DFZ Capital, a wholly owned subsidiary of DFI, for €19.7 million cash, with an option of increasing its stake by a further 15 per cent. As a strategic investor, the travel retail conglomerate will help enhance DFI’s business in Malaysia and regionally.

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