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PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s revenue for the fourth quarter ended Dec 31, 2020 dropped marginally to RM591.42 million from RM592.73 million a year ago.
The group’s performance in the current quarter was affected by the Covid-19 pandemic. Its operations and stores operating hours are restricted during various stages of movement control order (MCO). The recovery movement control order (RMCO) was in effect from June 10, 2020 to Aug 31, 2020. Subsequently, the Malaysia government re-introduced CMCO on Oct 12, 2020 in various hot spot states due to increased Covid-19 cases. This imposition has since been extended nationwide.
The group’s consolidated profit after tax for the current quarter after taking into consideration the corporate exercise expenses stands at RM5.5 million. Corporate exercise expenses which were primarily professional fees, interest to finance the acquisition of Caring Group and fair value gain from investments in quoted shares amounts to RM12.1 million for the quarter.
Revenue from convenience stores declined by 27.9%. Most product categories recorded lower revenue resulting in lower gross profits. Operating expenses improved for the current quarter by RM50.9 million or 25.6% due to lower wages from a hiring freeze, lower inventory shrinkages, utilities, maintenance, and rents. Excluding expenses incurred in the corporate exercise, the convenience store segment recorded a core profit after tax of RM10.5 million.
Caring Group contributed a revenue and profit after tax of RM164.2 million and RM7.2 million respectively in the current quarter.
For the full year period, the group’s revenue rose 7.5% to RM2.54 billion from RM2.36 billion a year ago. The group’s consolidated profit after tax for the 12 months after taking into consideration the corporate exercise expenses was reported at RM35.4 million.
Revenue from convenience stores declined by 12.7%, primarily driven by lower sales from Q2 to Q4 as a result of MCO and CMCO. Excluding expenses incurred from corporate exercises, the convenience stores segment recorded a core profit after tax of RM48.0 million. Corporate exercise expenses incurred for the 12 months amounted to RM33.8 million.
In the pharmaceutical segment, Caring Group contributed a revenue and profit after tax of RM475.5 million and RM21.1 million respectively for the nine months ended Dec 31, 2020.
The group expects the trading condition to gradually recover and will continue to explore opportunities for growth in other channels and innovate in its 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, and at the same time refreshing the 7-Eleven and Caring brand in the mind of customers though refreshed stores and innovations in our product offering.”
