PETALING JAYA: Convenience store chain 7-Eleven Malaysia Holdings Bhd recorded revenue of RM745.5 million in fourth quarter ended Dec 31, 2024, an increase of RM51.2 million or 7.4% compared to RM694.3 million achieved in the corresponding quarter of the previous year.
The growth in revenue was mainly driven by the net addition of 69 new stores compared to the corresponding quarter last year, along with the boost in sales from year-end holiday season, leading to a higher average per store day.
As compared to the same quarter of the previous year, 7-Eleven Malaysia rolled out 289 7-CAFe store formats, driving up the total count to 536 7-CAFe stores in 4Q 2024.
“We introduced a range of affordably priced Ready-To-Eat packed meals, prepared with high-quality locally sourced ingredients which had contributed positively to the Fresh Food sales participation as compared to a classic store in 4Q-2024,” the company said in a statement.
Operating expenses decreased by RM35.6 million or 12.2%, primarily due to lower staff cost, reduced spending on media advertising and lower professional fees in 4Q 2024.
Excluding corporate exercise expenses which comprise share of losses and impairment losses of the investment in joint ventures and tax expenses arise from the corporate investments, the group recorded a normalised profit after tax from continuing operations amounting to RM9 million against a loss after tax in last year’s same quarter.
The convenience stores recorded revenue of RM2,925.5 million for the year ended Dec 31, 2024, an increase of RM142 million or 5.1% compared to RM2,783.6 million in the previous year. This revenue growth was accompanied by a gross profit of RM902.7 million, up RM36.7 million or 4.2%, maintaining a stable gross profit margin of 30.9%.
Operating expenses for the convenience stores increased by RM19.3 million or 2.1%. This rise is attributed to higher store rental costs and utilities as a result of a broadened retail network, increase in store depreciation, and including IT and non-IT maintenance expenses.
Excluding the corporate exercise expenses which comprise share of losses and impairment losses of the investment in joint ventures and tax expenses arise from the corporate investments, the group recorded a normalised profit after tax from continuing operations amounting to RM53.2 million against the loss after tax last year.
Comenting on prospects, 7-Eleven Malaysia said the country’s retail sector demonstrated resilience in 4Q 2024, driven by robust growth in overall investment activities, goods exports, tourism and household spending.
“Our focus for the convenience stores segment remains on the expansion of our 7-CAFe store format, which is essential for broadening our product selections, enhancing in-store customer experience, and driving growth in the fresh food category. A notable accomplishment to date includes the opening of 65 7-CAFe stores in 4Q 2024, said the company.
It added that its ongoing initiatives include continuing the establishment of 7-CAFes beyond Klang Valley, expanding into high-potential areas, and strengthening its partnership with their Japanese counterpart to broaden fresh food offerings, while maximising commissary production yields through the adoption of best operational practices and discipline.
Additionally, 7-Eleven Malaysia said it is committed to expanding its private label portfolio as it aims to serve the growing numbers of value-driven consumers who prioritise product quality over brand recognition.
In order to align with its customer-centric approach, the company will continue its efforts in consumer research and insights, leveraging advanced analytics, social listening and brand health surveys to continuously improve its services and product offerings.
