Friday 29 Mar 2024
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KUALA LUMPUR (Aug 25): 7-Eleven Malaysia Holdings Bhd’s net profit for the second quarter ended June 30, 2022 (2QFY22) surged by 23 times to RM25.77 million from RM1.12 million in the same period last year on improved contribution from both its convenience stores and pharmaceutical segments respectively.

Earnings per share swelled to 2.29 sen from 0.1 sen previously, the convenience store operator said in a bourse filing on Thursday (Aug 25), with no dividend declared for the quarter under review.

Revenue grew 39.5% to RM943.67 million — 7-Eleven Malaysia's highest quarterly revenue to date — from RM676.67 million in the same period a year ago.

7-Eleven Malaysia’s convenience stores segment generated RM644.3 million revenue, an increase of RM207.6 million or 47.5% year-on-year on the back of a more jubilant Hari Raya with local travel restrictions lifted and the re-opening of international borders.

The group’s pharmaceutical segment also benefited from more robust trading activity and the re-opening of international borders spurred medical tourism, especially for Wellings Pharmacy which recorded an increased revenue of RM59.4 million or 24.8% to RM299.4 million for the quarter.

“The company opened 16 7-Café stores in the quarter under review, bringing a total of 31 7-Café stores, 7-Eleven Malaysia said.

For the first six-month period, 7-Eleven Malaysia’s net profit expanded 292% to RM50.15 million from RM12.8 million, as cumulative six months' revenue climbed 33.73% to RM1.78 billion from RM1.33 billion.

Looking ahead, 7-Eleven Malaysia remains cognisant and will continue to monitor potential headwinds arising from global supply chain disruptions, workforce supply constraints and cost pressures on the back of rising minimum wages and inflation notwithstanding the recent positive turnaround in trading conditions and retail sentiment.

7-Eleven Malaysia noted the convenience store segment will continue to focus on the roll out of its 7-Café stores, which entails much improved product offerings and in-store customer experience.

“In addition, this 7-Café format is expected to contribute positively to the growth of our fresh food category. We will also continue our efforts to enhance our product assortment, fresh food and private labels to drive stronger sales mix for margin improvement and/or preservation,” it said.

As for the pharmaceutical segment, SEM said it had shown much resilience over the pandemic and will continue to strengthen its market share together with The Pill House and Wellings group.

“We have opened our first Caring store in Sarawak and with that, the group has now established its store footprint nationwide except for Terengganu. On the same note, Wellings had also successfully opened seven stores in Indonesia via our joint venture in PT Era Caring Indonesia,” it added.

7-Eleven Malaysia shares finished one sen or 0.64% lower at RM1.56, giving it a market capitalisation of RM1.92 billion.

Edited ByKathy Fong
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