PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s net profit for the financial year ended Dec 31, 2018 (FY18) rose 2.4% to RM51.31 million from RM50.11 million a year ago, driven by higher profit contribution from most product categories and higher marketing income.
In a filing with Bursa Malaysia, the group said its gross profit improved by 5.4% from a year ago mainly due to the revenue growth and gross profit margin expansion of 1.4% points. However, other operating income fell 68.9% year-on-year.
Revenue for the year rose 1.3% to RM2.22 billion from RM2.19 billion a year ago, underpinned by growth in new stores, improvement in same-store sales and consumer promotion activity.
For the fourth quarter ended Dec 31, 2018, 7-Eleven’s net profit fell 21.3% to RM12.49 million from RM15.86 million a year ago due to lower other operating income, despite higher revenue, gross margin improvement and higher marketing income.
During the quarter, gross profit rose 5.6% year-on-year due to higher revenue and improvement in gross margin by 1.5% points. The improvement in gross profit was due to higher gross profit margins across most categories boosted by marketing income.
Other operating income fell 81.9% due to compensation income from vendors of RM7.5 million in the previous year. Selling and distribution expenses for the quarter rose 6.2% due to new store expansion resulting in higher staff related costs and rental costs.
Revenue for the quarter rose 1.5% to RM554.26 million from RM546.24 million a year ago driven by growth in new stores, higher average spend per customer and better consumer promotion activity.
Moving forward, 7-Eleven expects trading conditions to improve, driven by domestic demand and anticipated heightened consumer sentiment.
The group plans to continue refreshing the 7-Eleven brand in the mind of customers through innovations in promotions, products and pricing.
