7-Eleven Q3 earnings jump 55% from Q2

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s third quarter net profit ended Sept 30, 2015 (Q3’15) grew by 55% to RM16.7 million compared with the preceding quarter in line with increased sales.

In a statement yesterday, the company said sales in Q3’15 and in the first nine months of the year grew 6.6% and 6.7% respectively despite the overall negative retail market due to the impact of the Goods and Services Tax (GST) and weak consumer sentiment.

7-Eleven CEO Gary Brown said the third quarter continues to highlight the significantly negative effect that the introduction of the GST and weak consumer sentiment has had on total FMCG retail spending.

“However, effective execution of our growth strategies has enabled 7-Eleven to deliver strong results in the third quarter. We remain confident that continuous store expansion, store refurbishment, innovative promotional activity, improved merchandise mix and expanded in-store services will continue to deliver positive results despite the obvious headwinds,” he said.

“Examples of this include our recent Crystal Charms redemption promotion, new food service products such as steamed pau, our increased added value promotions and the addition of Syabas to our existing suite of bill payment options, which include U-Mobile, Astro and TM. All of this is bringing enhanced true convenience to our customers,” he added.

In Q3’15 its gross profit of RM160.1 million improved by 11.3% mainly attributed to revenue growth and gross profit margin expansion.

As of Sept 30, 2015, 7-Eleven noted that 138 net new stores have been opened resulting in a total store network of 1,883 stores as of the same date.