Duty Free International Q3 net profit sinks 85%, stronger ringgit results in forex loss

DUTY Free International (DFS) has posted a net profit of RM3.3 million (S$1.1 million) in the third quarter, down 84.7 per cent from the same period a year earlier.

A net foreign exchange loss of RM7.5 million versus a RM9.6 million net forex gain in the same period a year earlier was the main drag on the bottom line. The group also saw a 24.9 per cent or or RM21.8 million surge in inventories purchased and material consumed.

Revenue in the three months ended Nov 30 was RM133.5 million, up 0.4 per cent from the same period a year earlier.

A third interim dividend of S$0.01 per share was declared. In the same period a year earlier, a second interim dividend of S$0.0125 per share was declared.

Third-quarter earnings per share was 27 sen, down from RM1.81 in the same period last year.

Net asset value per share was 46.44 sen as at Nov 30, up from 44.88 sen as at Feb 28 last year.

The counter closed unchanged at S$0.275 on Wednesday before the results were announced.

The group said in its filing to the stock exchange: "Given the current economic condition, with the volatile Malaysian ringgit against the US dollar coupled with the competitive business environment and weak consumer sentiment, the retail industry in which the group operates is expected to remain challenging."