7-Eleven 1Q earnings stand firm after incurring Caring acquisition fees

TheEdge Thu, May 28, 2020 08:27pm - 3 years View Original


KUALA LUMPUR (May 28): Due to higher revenue and marketing income earned, 7-Eleven Malaysia Holdings Bhd’s net profit for the first quarter ended March 31, 2020 (1QFY20) stood firm at RM11.37 million, as compared to net profit of RM11.14 million a year ago.

Earnings per share was likewise maintained at 0.99 sen.

In an exchange filing today, the convenience store operator said excluding the cost incurred in the corporate exercise in acquiring Caring Pharmacy Group Bhd, the group would have achieved profit after tax of RM20 million, an increase of 78.6%.

In the first three months, 7-Eleven’s revenue rose by 6.09% to RM619.29 million from RM583.73 million, driven by the growth in new stores, higher same store sales and better consumer promotion activity.

Commenting on prospects, the company said its performance is affected by the Covid-19 pandemic as stores in malls are closed while others are operating under restricted hours during the Movement Control Order.

“While it is difficult to ascertain changes in consumer behaviour and how the economy will recover, we will continue to explore opportunities for growth in other channels and innovate in our product offerings,” it said.

“We will also continue to focus on our customer’s 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 though refreshed stores, innovations in our pricing, promotions, and developing exciting products,” it added.

Shares in 7-Eleven closed unchanged at RM1.30, giving it a total market capitalisation of RM1.5 billion.

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