PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s net profit for the first quarter ended March 31, 2019 rose 24.8% to RM11.15 million from RM8.93 million a year ago driven by higher revenue and marketing income.
In a filing with Bursa Malaysia, the group said that the adoption of MFRS 16: Leases had reduced its net profit by RM2.1 million, excluding which it would have achieved net profit of RM13.8 million, reflecting a growth of 47.8% from a year ago.
Revenue for the quarter rose 9% to RM583.73 million from RM535.69 million a year ago driven by growth in new stores, higher average spend per customer and better consumer promotion activity.
Revenue from food service segment is above 3.5% of total revenue, which grew more than 30% against the corresponding quarter last year.
Gross profit for the quarter improved to RM210.7 million, rising 9.1% from a year ago due to the increase in revenue, favourable sales mix, higher marketing income and improved logistics expenses recovery.
Selling and distribution expenses rose 1.8% year-on-year due to new store expansion resulting in higher staff related costs and utilities costs. This was partially offset by the effect of adoption of MFRS 16: Leases which resulted in higher depreciation expenses and lower rental expenses.
Meanwhile, administrative and other operating expenses rose 13.2% during the quarter mainly due to higher staff related costs.
Moving forward, the group expects trading conditions for the next quarter to remain challenging.
“We will however, continue to focus on our customers’ 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 through refreshed stores, innovations in our pricing, promotions and developing exciting products,” it said.
