On October 15, after market close, China Duty Free Group (CDFG, SH.601888), the world’s largest travel retail operator, released its financial report for the first three quarters of 2024. Amid a slowdown in domestic consumption and weak consumer demand, the company faced numerous challenges. For the reporting period, CDFG achieved revenue of RMB 43.021 billion, down 15.38% year-on-year, and a net profit of RMB 3.921 billion, a 24.70% decline. However, the company’s gross profit margin for its main business improved to 32.57%, up by 1.09 percentage points compared to the same period last year.
The company saw significant growth in cross-border duty-free store sales, thanks to an expanded range of visa-free countries, optimized transit visa policies, and an increase in international flights. Notable highlights include:
- Beijing airports (including Capital International Airport and Daxing International Airport) reported a revenue increase of over 140% year-on-year.
- Shanghai airports (including Pudong International Airport and Hongqiao International Airport) saw nearly a 60% revenue growth year-on-year.
Additionally, CDFG strengthened its product offerings by introducing 165 new brands across categories such as cosmetics, luxury goods, food, and alcohol, with domestic brands accounting for over 40%. This contributed to robust sales growth.
As of the market close on October 16, CDFG’s stock price fell by 4.24%, closing at RMB 66.1 per share, with a market capitalization of approximately RMB 135.5 billion.
About China Duty Free Group
China Tourism Group Duty Free Corporation Limited (formerly China International Travel Service Corporation Limited) is a state-controlled, publicly listed company focusing on travel retail (duty-free). Established in 2008 by China International Travel Service and China Duty Free Group, in collaboration with OCT Group, the company was listed on the Shanghai Stock Exchange in 2009. CDFG is the largest duty-free operator in the Chinese Mainland, with subsidiaries handling wholesale and retail operations for duty-free products such as tobacco, alcohol, and cosmetics. Another subsidiary, CITS Investment Company, is responsible for developing tourism-related commercial complexes.
| Source: Official financial report
| Image Credit: Official website
| Editor: LeZhi
