Duty Free International Limited returned to the black for the six months ended Aug 31, 2025, posting a net profit attributable to shareholders of RM4.0 million compared with a RM1.9 million loss a year earlier. The turnaround was mainly driven by a sharp reduction in unrealised foreign-exchange losses and lower staff costs.

Earnings per share came in at 0.34 sen versus a loss per share of 0.16 sen in the prior-year period. The group paid a first interim dividend of S$0.00165 per share on Aug 6, 2025, up from S$0.00125 a year ago.

Group revenue inched down 0.9% year-on-year (YoY) to RM74.8 million. The core trading segment, which sells duty-free and non-dutiable merchandise, contributed RM73.0 million, while the investment holding and others segment, comprising mainly fresh oil-palm fruit sales, added RM1.8 million.

By segment, the trading division generated a pre-tax profit of RM6.5 million, reversing a RM4.5 million profit a year ago, while investment holding and others booked a pre-tax profit of RM6.2 million (FY2025: RM-4.7 million). After eliminating inter-segment items of RM6.3 million, group pre-tax earnings stood at RM6.4 million, up from a RM0.2 million loss previously.

Performance was boosted by a RM6.0 million YoY reduction in unrealised foreign-exchange losses as the group cut its exposure to foreign currencies. Employee benefit expenses also fell 18.3% to RM6.2 million. These gains offset lower other income, which declined 12.1% to RM5.1 million, mainly because last year’s period included a one-off RM0.8 million lease-modification gain.

On the balance sheet, development rights rose to RM18.5 million after the firm capitalised incidental costs tied to a Johor Bahru land parcel earmarked for a mixed-use project. Net cash stood at RM222.8 million.

Looking ahead, management said the retail environment remains challenging amid cost inflation and cautious consumer spending. The closure of its Bukit Kayu Hitam outlet following a compulsory land acquisition is expected to weigh on revenue. To diversify earnings, the company has proposed acquiring United Industries Holdings Sdn Bhd for RM175 million, which would add an automotive components business, and is pushing ahead with a serviced-apartment joint development in Johor Bahru. The acquisition and diversification plans will be put to shareholders at an extraordinary general meeting on Oct 28, 2025.