KUALA LUMPUR (May 24): 7-Eleven Malaysia Holdings Bhd, which is controlled by tycoon Tan Sri Vincent Tan Chee Yioun, saw its net profit for the first financial quarter ended March 31, 2017 (1QFY17) halve to RM8 million or 0.72 sen a share, from RM15.93 million or 1.35 sen a share a year ago, due to an increase in selling and distribution costs.
 
In the filing with Bursa Malaysia today, 7-Eleven said that this was due to new store expansion and the impact of the minimum wage increase, which came into effect on July 1 last year.
 
Revenue for 1QFY17 was marginally lower at RM522.5 million, from RM526.2 million a year ago.
 
In a separate statement, 7-Eleven Malaysia chief executive officer Gary Brown said the group will be the first retailer in the country to launch Alipay, which is a third-party online payment platform launched by China’s Alibaba Group.
 
“Last year, there were approximately 2.1 million tourists from China and this is expected to grow to about 3.5 million in 2017, making 7-Eleven Malaysia a very attractive destination for those tourists to shop using their Alipay E-Wallet.
 
Brown added he is confident on the prospects for the group.
 
“In the first quarter of 2017, we have continued to hold our dominant position in the market.
 
“We remain confident that continuous store expansion, refurbishment, promotional activity, improved merchandise mix and expanded in-store services will continue to deliver positive results, despite the challenging headwinds,” he said.
 
At closing bell today, 7-Eleven shares were up two sen or 1.4% to RM1.42, for a market capitalisation of RM1.6 billion.