7-Eleven 3Q profit doubles to RM17.1m on better sales, margin

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KUALA LUMPUR (Nov 21): 7-Eleven Malaysia Holdings Bhd’s net profit slightly more than doubled to RM17.1 million in the third quarter ended Sept 30, 2014, from RM8.2 million in the previous corresponding quarter.

The higher profit was mainly driven by sales growth, higher gross profit margin and growth in other operating income, said the convenience store operator in a filing with Bursa Malaysia.

This was further enhanced by lower administrative and other operating expenses, it added.

The firm’s third quarter revenue grew 11.7% to RM487.3 million from RM436.4 million a year ago.

Higher revenue was driven by growth in new stores, improved merchandise mix and consumer promotion activity.

7-Eleven’s CEO Gary Brown said: “The strong third quarter and nine-month period results reflected positive growth in profits and revenue driven by the on-going execution of our strategy.”

For the nine-month period, net profit leapt 34.3% to RM45.2 million from RM33.6 million in the same period last year, while revenue jumped 12.9% to RM1.41 billion from RM1.25 billion previously.

7-Eleven also attributed the higher profit to sales growth, higher gross profit margin and growth in other operating income.

However, profit was partially offset by the increase in selling, distribution, administrative and other operating expenses in line with store expansion.

7-Eleven also attributed the larger revenue to growth in new stores, with same store sales growth of 4.5%. The firm has 1,677 stores as at Sept 30, 2014.

“The group remains positive in its outlook for the remainder of the year,” it said on future prospects.

7-Eleven will continue to roll-out new stores to increase the existing network as well as continue its on-going store refurbishment programme.

The group's shares ended flat at RM1.65 today, giving it a market capitalisation of RM2.05 billion.