PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s net profit for the third quarter ended Sept 30, 2019 rose 1.3% to RM16.98 million from RM16.76 million a year ago thanks to the increase in revenue and higher marketing income.
The group’s revenue of RM594.16 million grew 4.5% against the previous year’s corresponding quarter’s of RM568.52 million, driven by the growth in new stores, higher customer counts and better consumer promotion activity.
Revenue from food service segment accounted for 4% of total revenue which grew more than 25% against the corresponding quarter in the previous year.
7-Eleven also opened 53 new stores bringing the total network to 2,382 stores.
The company’s CEO Colin Harvey said he was pleased that the group has been able to continue to deliver strong results, despite the impact from the adoption of MFRS16.
“We are confident that continuous implementation and improvement of our strategy roadmap in strengthening the key areas of assortment, supply chain, operational excellence, store base and digitally enabling the organisation will continue to deliver positive results despite challenging headwinds as we look forward to ensuring that 7-Eleven remains as Malaysian consumers preferred convenience store brand,” he said.
For the nine month period, the group’s net profit increased 10% to RM42.71 million from RM38.82 million, while its revenue of RM1.77 billion grew 6.3% against RM1.66 billion in the previous year’s corresponding period, driven by the growth in new stores, higher average spend per customer and better consumer promotion activity.
The group noted that due to the adoption of MFRS 16 : Leases effective Jan 1,2019 had reduced profit after tax by RM6 million.
“Excluding MFRS 16 : Leases, the group would have achieved a profit after tax of RM48.7 million which is an increase of RM9.9 million or 25.6% as compared to the corresponding period in the previous year,” it said in a statement.
During the period ended Sept 30, 2019, the company paid a single tier cash dividend of 2.4 sen per share and share dividend equivalent to 2.9 sen per share.
In its Bursa Malaysia filing, 7-Eleven said trading conditions for the next quarter are expected to be stable.
“We will 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,” the company said in the statement.
