DFI posts 48% drop in Q3 earnings to RM7.9m
RETAIL group Duty Free International (DFI) saw its earnings fall 48 per cent to RM7.9 million (S$2.6 million) for the third quarter of FY2020 ended November, weighed down by financial expenses which ballooned over tenfold year-on-year.
This translates to an earnings per share of 0.66 sen for the quarter, down from 1.26 sen a year ago.
Q3 revenue was up 25.6 per cent to RM197.2 million mainly due to contributions from Brand Connect Group and the trading of duty-free goods and non-dutiable merchandise.
However, Q3 financial expenses added up to RM1.6 million, over 10 times the RM100,000 a year ago. This was due to interest expenses of RM1.4 million from additional lease liabilities, which have to be recognised under new accounting standards.
DFI was also hit by a lower profit margin, a RM200,000 increase in inventory written off and a net loss in foreign exchange of RM1.1 million, compared to a RM1.5 million net forex gain a year ago.
For 9MFY2020, DFI posted a 45.3 per cent drop in earnings to RM20 million, while revenue rose 15.1 per cent to RM447.5 million.
DFI said that it will implement stringent cost controls amid a challenging outlook for the year.
"Against the backdrop of the increasingly competitive business environment and current economic condition of foreign currency volatility, particularly the Ringgit Malaysia against the US Dollar, the Group anticipates its business to remain challenging for the remaining quarter of FY2020," it said.
DFI shares closed at S$0.155 on Monday, down 1.27 per cent.
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