KUALA LUMPUR (Aug 27): 7-Eleven Malaysia Holdings Bhd's net profit increased 11% to RM14.59 million for the second financial quarter ended June 30, 2019, from RM13.13 million in the previous year's corresponding quarter, supported by contribution from its new stores.

Revenue for the quarter rose 6% to RM588.78 million from RM557.63 million a year earlier.

"The growth in revenue continued to be driven by the growth in new stores, higher average spend per customer and better consumer promotion activity," said the convenience store chain operator in its filing with the bourse.

It added that revenue from the food service segment accounted for more than 3% of its total revenue for the quarter.

The increase in revenue, favourable sales mix, higher marketing income and improved logistics expenses recovery had supported the growth in its profit for the quarter, which was partly offset by higher selling and distribution expenses and administrative and other operating expenses.

The adoption of Malaysian Financial Reporting Standards 16 (MFRS 16) leases had also resulted in higher finance cost.

For the six months ended June 30, net profit grew 17% to RM25.73 million from RM22.07 million in the previous year, while revenue increased 7% to RM1.17 billion from RM1.09 billion.

Looking ahead, the group expects trading conditions 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.

7-Eleven's share price fell 2 sen or 1.33% to close at RM1.48, giving a market capitalisation of RM1.83 billion.