7-Eleven Malaysia’s Q2 net profit soars 40.3% on margin expansion

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd reported a 40.3% increase in net profit to RM15.07 million for the second quarter ended June 30, 2016 against RM10.74 million in the previous corresponding period, driven by revenue growth, gross profit margin expansion, other operating income growth and good cost control.
Revenue for the quarter under review expanded 4.8% from RM482.32 million to RM505.7 million.
In a filing with the stock exchange, 7-Eleven CEO Gary Brown said the group remains confident that continuous store expansion, refurbishment, promotional activity, improved merchandise mix and expanded in-store services will continue to deliver positive results despite the challenging headwinds.
The group is of the view that the trading conditions for the remaining period of the current financial year are expected to remain challenging due to continued weak consumer confidence/spending and current macro-economic conditions.
"Despite this latest development, we remain positive of holding onto our market leading position," it said.
7-Eleven's first-half net profit rose 23.4% from RM25.12 million to RM31 million on the back of a 4.5% growth in revenue from RM987.31 million to RM1.03 billion.