7-Eleven 3Q net profit down 89% due to lockdown in June

7-Eleven 3Q net profit declines 89% due to FMCO in June

7-Eleven 3Q net profit declines 89% due to FMCO in June

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KUALA LUMPUR (Nov 25): 7-Eleven Malaysia Holdings Bhd saw its net profit decline 89% to RM1.44 million for the third quarter ended Sept 30, 2021 (3QFY21), from RM12.92 million a year ago, amid the strict standard operating procedures (SOPs) enforced under the Full Movement Control Order (FMCO) in June.

Its quarterly revenue increased marginally to RM680.22 million, from RM677.48 million in 3QFY20.

In its filing with Bursa Malaysia, 7-Eleven said the performance of its convenience stores segment was adversely affected by the FMCO, which took effect on June 1.

“Essentially, stores were operating under stricter SOPs with reduced operating hours, thereby affecting customer footfall and sales productivity,” it said, adding that it saw a decline in revenue across all product categories.

For comparison, the group said the country was under the Recovery Movement Control Order in the previous year’s corresponding quarter.

Meanwhile, its operating expenses were lower during the current quarter, due to lower wages from better manpower planning, shorter operating hours and lower shrinkages.

Excluding corporate exercise expenses, 7-Eleven said the convenience store segment recorded a net loss of RM1.2 million.

The pharmaceutical segment saw a 60% increase in revenue contribution, in tandem with continued consumer focus on personal wellbeing and healthcare, which contributed to the segment’s 112% surge in net profit to RM17.1 million.

On a quarter-on-quarter basis, its net profit for 3QFY21 was up 29% from RM1.12 million in 2QFY21, while revenue was marginally higher versus the RM676.67 million reported for 2QFY21.

For the nine months ended Sept 30, its net profit fell 44% to RM14.23 million from RM25.32 million a year ago, while revenue climbed 3% to RM2.01 billion from RM1.95 billion.

“With the ongoing National Recovery Plan and relaxation of SOPs, while achieving higher vaccination rates in the country, the group is optimistic on the turnaround in trading conditions and the group’s operating results is poised to gradually improve in the coming quarters,” the group said.

7-Eleven shares closed unchanged at RM1.50 on Thursday, giving  it a market capitalisation of RM1.85 billion.

Lam Jian Wyn