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This Company Quietly Beat the Market This Week

Duty Free International Ltd (SGX: 5SO) closed at S$0.29 on Friday, finishing flat for the week. With Singapore’s broader market, as represented by the Straits Times Index (SGX: ^STI), declining 1% during the same period, Duty Free International has actually quietly beaten the market here this week.

The firm is the largest duty-free retailing group in our neighbouring country, Malaysia. Operating under the brand The Zon, Duty Free International has 36 outlets comprising 34 duty-free retail outlets and 2 duty-paid perfume and cosmetics stores.

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On Friday, 27 Feb, Duty Free announced that Mr Chiam Tow Cheang, General Manager for Marketing, Sales and Merchandising, will be stepping down to “pursue personal interests.” He took up the role in the middle of 2013 and was in-charge of “formulating, implementing and reviewing sales, marketing and merchandising strategies for the Group’s retail business.”

For the third quarter ended 30 November 2014, Duty Free saw an 11.6% year-on-year drop in revenue to RM136 million while net profits tumbled 40.7% to RM10.2 million.  The company had cited the change of sales mix and lower demands for certain products as the causes for the slip in revenue.

Going forward, Duty Free said that the outlook remains challenging for the financial year ending 28 February 2015, due to the vagaries of the global economy and the competitive operating and economic conditions. To remain competitive, Duty Free has set its sights on optimising operational efficiency and cost control measures.

The firm is trading at 17 times its historical earnings currently.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.