KUALA LUMPUR (Feb 25): Despite positive sales growth, 7-Eleven Malaysia Holdings Bhd’s net profit fell 22.21% to RM13.94 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM17.92 million, due to higher selling and distribution expenses from new store expansion in the current quarter.

The group told the bourse that its revenue increased by 3.87% to RM499.74 million for 4QFY15, from RM481.12 million a year ago.

For the full year FY15, the group’s net profit also dropped 11.53% to RM55.8 million, from RM63.07 million in FY14, although its revenue rose 5.98% to RM2 billion, from RM1.89 billion in the previous year.

In a separate filing, the group proposed to pay an interim single tier dividend of 2.3 sen per ordinary share and a special single tier dividend of 2.4 sen per ordinary share for FY15. The payment date is on March 31.

The growth in revenue for 4QFY15 continued to be driven by the growth in new stores, improved merchandise mix and consumer promotion activity.

“This growth was achieved despite on-going retail market negativity caused by goods and service tax (GST) implementation and weak consumer confidence or spending,” it said.

However, the group’s selling and distribution expenses for the quarter also increased by RM13.7 million or 10.3%, caused mainly by new store expansion resulting in higher staff cost, rental cost, store depreciation expense and store maintenance cost.

The group is of the view that the trading conditions for the next quarter is expected to stay challenging, due to general softening in the domestic private consumption, since GST implementation and the current macro-economic condition, which adversely affected consumer confidence.

“Despite this latest development, we are positive of holding onto our market leading position, while our new store expansion plan remains on track,” it added.

7-Eleven closed two sen higher at RM1.52 today, for a market capitalisation of RM1.77 billion.