China Duty Free Group’s 2023 Revenue Up 24.2% to ¥67.6B, Net Profit Grows 33.5%

1月 17, 2024

China Duty Free Group (SH.601888), the world’s largest travel retail operator, released its fourth quarter and full-year performance report for 2023:

  • In 2023, the company achieved a revenue of 67.576 billion yuan, a year-on-year increase of 24.15%, and a net profit attributable to the parent company of 6.717 billion yuan, a year-on-year increase of 33.52%.
  • For the fourth quarter, revenue reached 16.739 billion yuan, a year-on-year increase of 11.09%, with a net profit attributable to the parent company of 1.51 billion yuan, a significant year-on-year increase of 275.62%.

Compared to 2022,  it’s revenue and net profit both shifted from “decline” to “growth”. In 2022, the company achieved a revenue of 54.433 billion yuan, a year-on-year decrease of 19.57%, and a net profit attributable to the parent company of 5.03 billion yuan, a year-on-year decrease of 47.89%.

The group stated that in 2023, the company seized opportunities presented by the recovery of consumer spending and the loosening of entry and exit policies. It continued to focus on its duty-free core business, optimized its domestic and overseas business layout, and effectively enhanced operational efficiency, leading to a significant rebound in its main business and a continuous restoration of profitability.

As of the close of January 9, the stock price of  China Duty Free Group rose by 6.39% to 80.22 yuan per share, with a total market value of 186 billion yuan.

Key activities of China Duty Free Group in the fourth quarter of 2023 (source: Tong.Luxe.CO):

  • In October, its wholly-owned subsidiary, China Duty Free Group, opened its first Southeast Asian airport duty-free shop, DUTY ZERO by cdf, for trial operation. Located in the Siem Reap Angkor International Airport terminal in Cambodia, it includes both departure and arrival stores, covering a total area of 1,670 square meters.
  • In October, the fifth Board of Directors held its fourth meeting. According to the approved resolution, Wang Xuan was elected as the chairman of the fifth Board of Directors, with the term starting from the date of approval until the end of the fifth Board’s term.
  • In November, Swire Properties announced a cooperation with parent company China Tourism Group on the Phase II Yunjie Island (taxable) project of cdf Sanya International Duty-Free City. Swire Properties is mainly responsible for property leasing and operation management of the project. Since its upgrade at the end of September, the Yunjie Island (taxable) project in Sanya has welcomed the opening of 13 taxable stores including Louis Vuitton, Dior, Alexander Wang, etc. In the future, over 90 well-known international and domestic brands will be introduced, covering luxury goods, sportswear, and dining.
  • In December, they announced a supplementary agreement to the duty-free shop project operation rights transfer contract with Shanghai Airport (SH:600009). Key terms included enhancing the competitiveness of airport duty-free operations, promoting duty-free sales, actively seeking resource support, and monthly actual fees. The monthly actual fees, starting from December 1, 2023, will be calculated based on the higher of the monthly guaranteed sales commission and the actual monthly sales commission.
  • In December, the C area of cdf Sanya International Duty-Free City officially opened. This is the world’s first single commercial complex dedicated to high-end beauty and fragrance products, with a construction area of 78,000 square meters, spread over two floors. It mainly focuses on high-end fragrance and beauty formats, introducing a total of 132 fragrance brands, along with dining and other one-stop service brands. The total number of brands operated in the C area reaches 176, including several brands introduced to the Hainan duty-free market for the first time.

About China Duty Free Group

China Duty Free Group is a large joint-stock enterprise focusing on travel retail business  and is a listed controlling company of China Tourism Group Co., Ltd. Established in 2008 through the joint investment of the China International Travel Service Head Office and China Duty Free Group along with the Overseas Chinese Town Group Company, it was listed on the Shanghai Stock Exchange in 2009. The company is primarily engaged in the duty-free business and the development of tourism commercial complexes. Its wholly-owned subsidiary, China Duty Free Group, is the largest duty-free operator in China, dealing in the wholesale and retail of duty-free products such as tobacco, liquor, and fragrances. Another subsidiary, China Travel Investment Company, is responsible for the investment and development of tourism destination commercial complexes.

| Source: Official financial report, Tong.Luxe.CO

| Image Credit: Official Weibo, photography by Luxeplace

丨Reporter:Wang Jiaqi

| Editor: LeZhi