Welcome to Duty Free International Limited Group of Companies

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* Extracted from Annual Report 2024

Dear Shareholders,

On behalf of the Board of Directors of Duty Free International Limited (“DFI” or “Company”, and together with its subsidiaries, the “Group”), I am pleased to present to you the annual report for the financial year ended 29 February 2024 (“FY2024”).


In 2023, the global economy continued to face a series of challenges. High interest rates, elevated inflation, slowing global trade, and geopolitical tensions created a high level of uncertainty and weighed down on global growth during the year. Despite the challenging global conditions, Malaysia’s economy continued to expand, growing by 3.7% in 2023 (2022: 8.7%). The more moderate growth also reflected normalising conditions following the economic rebound in 2022, which was supported by the reopening of the economy and sizeable policy measures. During the year, Malaysia’s economy was supported by resilient domestic demand and further recovery in tourism activities. Labour market conditions improved as the unemployment rate declined to its pre-pandemic level. Employment continued to grow amid ongoing economic expansion. These improvements provided a lift to Malaysian household spending. Rising tourist arrivals also boosted Malaysia’s tourism sector and supported domestic businesses.1

Amidst the challenging business conditions, the Group remains steadfast and is dedicated to sustaining the Group by employing disciplined strategies to manage costs and safeguard cash reserves. This not only maintains our financial stability but also prioritizes the well-being of our employees and the communities we serve. Our focus remains on fortifying capital and liquidity buffers to bolster resilience against market uncertainties and challenges, while delivering long-term value to shareholders.


I am pleased to inform that despite the challenging economic conditions, the Group has demonstrated resilience and adaptability, achieving a commendable financial performance for FY2024. The Group registered an improved revenue of RM157.3 million, representing an increase of 3.6% or RM5.5 million over the revenue of RM151.8 million for the previous financial year ended 28 February 2023 (“FY2023”). Concurrent with the rise in revenue, the Group achieved a profit before tax of RM18.0 million for FY2024, compared to RM17.4 million for FY2023. However, despite the favorable revenue growth and increased profit before tax, the Group reported a lower net profit of RM14.0 million in FY2024, marking a decline of RM1.4 million from the net profit of RM15.4 million recorded in FY2023. The decrease in net profits for FY2024 was mainly due to increased tax expenses resulting from the complete resumption of business operations at the Group’s retail stores. The Group’s financial position remains robust, with net assets of RM348.3 million and cash and bank balances of RM185.1 million as at 29 February 2024.


The Group declared a total dividend of S$0.00255 per share, amounting to a total payout of S$3.1 million (equivalent to approximately RM10.7 million) for FY2024, which were paid out on 3 November 2023 and 16 February 2024. These payments of dividend translate to a dividend yield of approximately 2.83% based on the closing share price of S$0.090 on 29 February 2024.


The Malaysian economy is projected to remain on a steady growth trajectory in 2024, backed by firm domestic demand, primarily through continued expansion in private sector spending. The Ministry of Finance expects growth of the Malaysian economy to accelerate to 4-5% in 2024 from 3.7% in 2023. However, risks to growth remain tilted to the downside given ongoing external challenges.2
In view of the above, the Group anticipates the business environment in which it operates to remain challenging, especially considering the enduring impacts of the post-pandemic landscape. However, our ongoing efforts to seek opportunities, enhance operational efficiency and expanding our range of products and services position us favourably for sustainable growth and achievement. With our focus on strategic planning, resource allocation and cost optimization, the Group is cautiously optimistic that its operations and financial performance will continue to remain positive.


On behalf of the Board, I would like to convey our sincere appreciation and gratitude to all our valued shareholders, customers, suppliers, business partners and various government agencies for your unwavering and valuable support, cooperation, trust and confidence in the Group throughout the financial year. I wish to also extend my deepest gratitude to our dedicated team of management and employees for their dedication and support in ensuring the Group business sustainability and navigating through the challenging business environment. Their commitment and hard work play a vital role in steering our Group toward continued success. I would also like to thank my fellow Board members for their continuous dedication, invaluable advice and guidance throughout all these years which has contributed to the Group’s ability to achieve sustainable financial stability.

Last but not least, on behalf of the Board, I would like to give a warm welcome to our three new Independent Non-Executive Directors, namely, Jeneral Tan Sri Dato’ Sri Abdullah bin Ahmad @ Dollah bin Amad (B), Mr. Derrick Quek Meng Teck, and Puan Haslin binti Osman, who were all appointed to the Board on 2 May 2024. We eagerly anticipate their valuable insights guiding us as we navigate the next chapter of growth and advancement for the Group.

Thank You.

Adam Sani Abdullah
Non-Executive Chairman
Duty Free International Limited

1 https://www.bnm.gov.my/documents/20124/12142010/ar2023_en_book.pdf
2 https://www.sc.com.my/annual-report-2023/capital-market-review-outlook/outlook-for-2024#