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7-Eleven 2Q earnings up 11% amid growth of new stores

TheEdge Wed, Aug 28, 2019 10:29am - 10 months ago

KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd’s net profit grew 11% to RM14.59 million in the second quarter (2Q) ended June 30, 2019, from RM13.13 million a year ago, supported by contribution from new stores.

Quarterly revenue rose 6% to RM588.78 million from RM557.63 million a year earlier.

“The growth in revenue continued to be driven by growth in new stores, higher average spend per customer and better consumer promotion activity,” said the convenience store chain operator in its filing with Bursa.

It added that revenue from the food service segment accounted for more than 3% of its total revenue for the quarter.

The higher revenue, a favourable sales mix, higher marketing income and improved logistics expenses recovery had supported the quarterly profit growth, it said, which was partly offset by higher selling and distribution expenses, and administrative and other operating expenses.

The adoption of the Malaysian Financial Reporting Standards 16 leases also resulted in higher finance cost recognised.

In the six months ended June 30, net profit grew 17% to RM25.73 million from RM22.07 million in the previous year, while revenue increased 7% to RM1.17 billion from RM1.09 billion.

Looking ahead, the group expects trading conditions to remain challenging.

“We will, however, continue to focus on our customers’ needs, pursuing our core strategy pillars of operational excellence, cost management and commercial innovation, at the same time refreshing the 7-Eleven brand in the mind of customers through refreshed stores, innovations in our pricing, promotions and developing exciting products,” it said.

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