CTG DUTY-FREE Q1 revenue fell 10.96% year-on-year, net profit decreased by 15.8% | Financial Report Insights
China Tourism Group Duty-Free (CTG DUTY-FREE), which experienced a significant year-on-year decline in revenue and profit in the fourth quarter of last year, continued to face pressure in Q1, with both revenue and profit declining by double digits. Selling expenses and administrative expenses decreased by 9% and 11% year-on-year, respectively. The net cash flow from operating activities decreased by 9.52% year-on-year. At the end of the reporting period, the inventory balance was 15.751 billion yuan, a decrease of approximately 9.21% compared to 17.348 billion yuan at the end of 2024
Last year, the global duty-free market experienced a slowdown in growth and failed to return to pre-pandemic levels. At the same time, affected by Typhoon "Mokha," increased outbound consumption, competition from domestic brands, and consumers' higher demand for cost-effectiveness, the Hainan offshore duty-free market cooled down last year.
Against this backdrop, CTG DUTY-FREE's performance continued to be under pressure. Following a significant decline in the fourth quarter of last year, in the first quarter of this year, both revenue and net profit again saw double-digit declines, but the rate of decline slowed, with Q1 revenue down 10.96% year-on-year and net profit down 15.8%.
On April 29, CTG DUTY-FREE, the leader in China's duty-free industry, announced its Q1 2025 performance report, with the following key points:
Revenue: Q1 revenue was 16.746 billion yuan, a year-on-year decline of 10.96%.
Net profit attributable to shareholders: Q1 net profit attributable to shareholders was 1.938 billion yuan, a year-on-year decline of 15.98%.
Net profit excluding non-recurring items: Q1 net profit excluding non-recurring items was 1.936 billion yuan, a year-on-year decline of 15.81%.
Cash flow: The net cash flow from operating activities was 4.797 billion yuan, a year-on-year decrease of 9.52%.
CTG DUTY-FREE Revenue and Net Profit Decline in Double Digits
The financial report from CTG DUTY-FREE shows that the company's business continues to be under pressure. Q1 revenue decreased by 10.96% year-on-year to 16.746 billion yuan, and net profit attributable to shareholders decreased by 15.98% year-on-year to 1.938 billion yuan.
From the financial data, the company's gross profit margin showed slight pressure, with operating costs decreasing by approximately 10.51% year-on-year, slightly lower than the revenue decline. In terms of expense control, the company's selling expenses were 2.198 billion yuan, a year-on-year decrease of approximately 9.0%, and management expenses were 423 million yuan, a year-on-year decrease of approximately 11.0%. The company's financial expenses were -203 million yuan (negative value indicates financial income), an increase compared to -125 million yuan in the same period last year.
In terms of assets and liabilities, as of the end of March 2025, CTG DUTY-FREE's total assets reached 80.462 billion yuan, an increase of 5.51% from the beginning of the year; equity attributable to shareholders was 56.968 billion yuan, an increase of 3.40% from the beginning of the year.
In terms of cash flow, the net cash flow from operating activities was 4.797 billion yuan, although it decreased by 9.52% year-on-year, it remained at a high level, with cash and cash equivalents at the end of the period reaching 39.646 billion yuan.
In terms of inventory management, the company's inventory balance at the end of the reporting period was 15.751 billion yuan, a decrease of approximately 9.21% from 17.348 billion yuan at the end of 2024
