This article first appeared in The Edge Financial Daily on August 30, 2018

KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd reported a 29.4% jump in net profit to RM13.1 million or 1.17 sen per share for the second quarter ended June 30, 2018 from RM10.2 million or 0.91 sen per share in the corresponding quarter a year ago, mainly on the back of a 0.6% point improvement in gross margin.

Revenue for the quarter edged higher 0.44% to RM557.6 million compared with RM555.2 million in 2QFY17, driven by growth in new stores and better consumer promotion activity.

For the cumulative six months ended June 30, 2018 (1HFY18), the convenience store operator recorded a growth of 21.5% in net profit to RM22.1 million from RM18.2 million in 1HFY17.

“Other operating income grew by RM3.8 million or 6.3% compared with the corresponding period in the previous year,” the company said in a filing with Bursa.

7-Eleven’s 1HFY18 revenue inched up 1.45% to RM1.09 billion from RM1.08 billion a year ago.

In a press statement, group chief executive officer Collin Harvey said, “We are happy with our net profit growth of 29.4% for the quarter.

“However, we believe there is room to improve on a number of key metrics.

“I am personally excited to have joined the business just over two weeks ago, and I am confident that a strategy road map focused on strengthening the key areas of assortment, supply chain, operational excellence, store base, and digitally enabling the organisation will bear fruit in terms of financial performance, and overall customer shopping experience.”