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7-Eleven 1Q net profit up 2% to RM11.4 million

29 May 2020 / 00:49 H.

PETALING JAYA: 7-Eleven Holdings Malaysia Bhd reported a net profit of RM11.37 million for its first quarter ended March 31, a 2% increase from RM11.14 million reported previously attributed to an increase in revenue and improved logistics expenses recovery.

However, excluding the cost incurred in the acquisition of Caring Pharmacy and a 46% stake in Dego Ride’s owner Myinteractive Sdn Bhd, the group would have achieved a profit after tax of RM20 million, a 78.6% increase year-on year.

Revenue for the period rose by 6.1% to RM619.3 million from RM583.73 million registered previously, driven by the growth in new stores, higher same store sales and better consumer promotion activity.

Other operating income increased by RM4.9 million or 17.2% driven by an increase in marketing income.

Group CEO Colin Harvey said the group’s strategy roadmap of strengthening assortment, supply chains, operational excellence, store base and digitally enabling the organisation continues to bear fruit despite challenging conditions ahead due to the Covid-19 pandemic.

“Our continuous discipline in executing our strategy roadmap as well as leveraging and seeking out opportunities from our recent corporate acquisitions whilst remaining flexible to adapt to market changes shall ensure that 7-Eleven remains as the nation’s preferred convenience store choice,” Harvey said in a press release.

Looking ahead, while acknowledging that it is difficult to ascertain changes in consumer behaviour and how the economy will recover, Harvey added 7-Eleven will continue to explore opportunities for growth in other channels and innovate product offerings.

“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,” he said.

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