Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 26): 7-Eleven Malaysia Holdings Bhd’s net profit fell 21.26% to RM12.49 million or 1.11 sen per share for the fourth quarter ended Dec 31, 2018 (4QFY18), from RM15.86 million or 1.43 sen per share last year, on lower operating income.

The 24-hour convenience store operator registered its 4QFY18 other operating income of RM1.84 million, a 81.89% decline from RM10.14 million last year, primarily attributed to compensation income from vendors of RM7.5 million in the previous year.

7-Eleven also noted that its selling and distribution expenses for the quarter increased by 6.2% to RM164.71 million against RM155.09 million, mainly due to new store expansion, resulting in higher staff-related costs and rental costs.

Its quarterly revenue, however, was up 1.47% to RM554.26 million, compared with RM546.24 million in 4QFY17, driven by growth in new stores, higher average spend per customer and better consumer promotion activity, it's filing with Bursa Malaysia today showed.

For the full year ended Dec 31, 2018 (FY18), its net profit grew 2.39% to RM51.31 million or 4.57 sen per share, versus RM50.11 million or 4.51 sen per share last year, while revenue rose 1.33% to RM2.22 billion, from RM2.19 billion in FY17.

On prospects, 7-Eleven said the board of directors are expecting trading conditions for the next quarter to improve, driven by domestic demand and anticipated heighted consumer sentiment.

It added that the group will continue to refresh the 7-Eleven brand in the mind of the customer though innovations in 7-Eleven's promotions, products and pricing.

“We expect to see further improvement in the next quarter by pursuing our core strategy pillars of operations excellence, cost management and commercial innovation,” the filing said.

Shares of 7-Eleven closed unchanged at RM1.45 today, bringing its market capitalisation to RM1.64 billion.

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