KUALA LUMPUR (May 26): Convenience store operator 7-Eleven Malaysia Holdings Bhd (SEM) saw its net profit more than double to RM24.38 million in the first quarter ended March 31 (1QFY22) from RM11.77 million a year earlier, driven by higher revenue contribution from its convenience and pharmaceutical stores.

Earnings per share rose to 2.16 sen for 1QFY22 from 1.04 sen for 1QFY21.

Quarterly revenue grew 27.8% to RM839.98 million from RM657.13 million in 1QFY21, largely due to longer trading hours.

On a quarterly basis, the group’s net profit for 1QFY22 fell 16.7% from RM29.24 million in 4QFY21 even though revenue came in higher by 5.7% from RM795.06 million in 4QFY21.

On prospects, SEM said it will continue to monitor potential headwinds arising from global supply chain disruptions, local minimum wages and labour availability. "Essentially, we will take appropriate measures to mitigate their impact, as necessary."

It added that the convenience store segment will continue to focus on the roll out of its new 7-Café store format, which entails much improved product offerings and in-store customer experience.

“In addition, the 7-Café format is expected to contribute positively to the growth of our fresh food category.

“The pharmaceutical segment, which had shown much resilience over the pandemic, will continue to strengthen its market share together with The Pill House and Wellings group," it said in a bourse filing on Thursday (May 26).

“And through the recently announced joint venture with PT Era Caring Indonesia, the group will mark its entry into the Indonesian market, operating a network of pharmacies under the brand 'Wellings' in the current year,” SEM added.

SEM shares finished one sen or 0.7% lower at RM1.41 on Thursday, giving it a market capitalisation of RM1.74 billion.