Duty Free posts 85% decline in earnings to $1.1 mil on forex loss

Duty Free posts 85% decline in earnings to $1.1 mil on forex loss

By: 
Stanislaus Jude Chan
10/01/18, 05:46 pm

SINGAPORE (Jan 10): Duty Free International (DFI) saw its earnings plunge 84.7% to RM 3.3 million ($1.1 million) for the third quarter ended November 2017, down from RM 21.2 million a year ago.

This was mainly due to a net loss of RM 7.5 million in foreign exchange in 3Q18, compared to a net foreign exchange gain of RM 9.6 million a year ago, as a result of the strengthening of the Malaysian ringgit against the Singapore dollar and US dollar.

Revenue in 3Q18 was stable at RM 133.5 million, up marginally from RM 133.0 million a year ago. The improvement was mainly due to increase in demand for certain products and sales mix.

As at end November 2017, cash and cash equivalents stood at RM 267.6 million.

DFI has declared an interim dividend of 1 cent per share for the period, which will be paid on Mar 6, 2018.

This is 20% lower than the interim dividend of 1.25 cent per share paid in the corresponding period a year ago.

Looking ahead, DFI says the retail industry it operates in is expected to continue to remain challenging given the current economic conditions, a volatile US dollar versus Malaysian ringgit exchange rate, coupled with a competitive business environment and weak consumer sentiment.

It adds that it will continue its efforts in managing risks prudently as well as improving operational efficiency and cost control measures so as to remain competitive and profitable in the remaining quarter of FY18.

Shares of Duty Free International closed flat at 27.5 cents on Wednesday.

DBS undergoes target price cuts after a record FY18, but remains a 'buy'

SINGAPORE (Feb 19): Jefferies Singapore, OCBC Investment Research and RHB Research are maintaining their “buy” calls on DBS Group while lowering their price targets to $28.50, $29.31 and $28.80, respectively. This comes after the release of its 4Q18 results, which saw earnings grow 8% y-o-y to $1.32 billion to bring the bank’s earnings for the full year to a record high of $5.63 billion. In a Tuesday report, Jefferies analyst Krishna Guha says he has lowered his FY19-20 earnings per share (EPS) estimates on the back of reduced loan and non-interest growth, although valuations remai....
Read More >>

Winners and losers from Singapore's budget as election looms

SINGAPORE (Feb 19): Singapore Finance Minister Heng Swee Keat boosted health-care and military spending, gave tax rebates to citizens and tightened rules on foreign workers ahead of an election that could come as early as this year. Heng announced a new $8 billion support package for seniors in his budget speech on Monday, as well as measures to help local businesses adopt new technologies. The expansionary fiscal plan will push the overall budget deficit to 0.7% of gross domestic product in the year ending March 2020, from a revised surplus of 0.4% this year. The finance minister opened....
Read More >>

Sasseur REIT FY18 DPU exceeds IPO forecast by 12.6%

SINGAPORE (Feb 18): The manager of Sasseur REIT announced a 4Q18 DPU of 1.999 cents, 28.1% higher than forecast. This also brings 2H18 DPU to 3.541 cents and FY18 DPU to a total of 5.128 cents. Sasseur REIT offers investors the unique opportunity to invest in the fast-growing retail outlet mall sector in China through its initial portfolio of four quality retail outlet mall assets. 4Q18 distributable income came in at $23.6 million, 28.1% higher than forecast while EMA rental income came in 1.6% higher than forecast at $31.2 million. Based on the Feb 18 closing unit price of $0.71,....
Read More >>