China Duty Free Group Reports Nearly 30% Growth in Revenue for the First Half of 2023 Fiscal Year

On August 24th, China Duty Free Group (CDF) released its performance report for the first half of the fiscal year ending on June 30, 2023. The report indicates that CITS is on a growth trajectory, with steady development in its core business. According to the latest Moodie Davitt Report, CDF retained its position as the world's largest travel retailer in 2022. This marks the company's third consecutive year at the top of the global rankings. 

In the first half of 2023 fiscal year, CDF revenue increased by 29.68% year-on-year to 35.858 billion yuan, primarily due to the gradual recovery of the domestic tourism market during the reporting period. Under the "Deepening Hainan" strategy, the company continuously optimized its operations and management in the Hainan region, improving overall gross profit margins and boosting profitability. During the reporting period, the company diversified its product offerings, enhanced the supply of popular products, optimized online tools and methods, and increased the efficiency of online platform operations, leading to sustained business growth.

Gross profit increased by 16.66% year-on-year to 10.754 billion yuan. Operating profit decreased by 4.24% year-on-year to 5.132 billion yuan. Sales and promotional expenses increased by 105.08% year-on-year to 5.045 billion yuan. This increase was primarily due to the recovery of passenger flows at key airports, and the impact of airport rental concessions in the same period last year.

As of June 30, the group did not conduct any major acquisitions or divestitures. In the future, the group will consider acquisition opportunities for high-end brands and duty-free operators.