PETALING JAYA: 7-Eleven Malaysia Holdings Bhd (SEM) posted revenue of RM744 million for the third quarter ended Sept 30, 2024 (Q3’24), an increase of RM38.7 million or 5.5% compared to RM705.3 million achieved in the same quarter last year.
The revenue growth was mainly driven by the net addition of 79 new stores compared to Q3’23, alongside the festivities of Awal Muharram, Merdeka Day and other public holidays in the quarter under review, leading to a higher average per store day.
Compared to the same quarter last year, SEM successfully added 285 of its 7-CAFé store formats, bringing the total count to 471 7-CAFé stores in Q3’24.
“We had introduced a range of affordably priced ready-to-eat (RTE) packed meals, prepared with high-quality locally sourced ingredients which had contributed positively to the fresh food sales growth in Q3 FY24,“ the company said in a statement.
SEM’s operating expenses increased by RM19.1 million or 8.6% in Q3’24, primarily due to higher operational costs
associated with store operations and logistics, including longer operating hours and expanded workforce is in tandem with a net increase of 79 new stores.
SEM’s total store count in Q3’24 stood at 2,611, SEM said.
For the nine months of FY24 (9M’24), the convenience stores recorded revenue of RM2.18 billion, reflecting an increase of RM90.8 million or 4.3% compared to RM2.08 billion in the same period last year.
The revenue growth was accompanied by a gross profit of RM676.7 million, up RM23.8 million or 3.6%, maintaining a stable gross profit margin of 31%.
Operating expenses for the convenience stores increased by RM54.7 million or 8.5% in Q3’24, attributed to higher store rental costs as a result of a broadened retail network, an increase in store depreciation, and including IT and non-IT maintenance expenses.
SEM’s profit after tax (PAT) for 9M’24 stood at RM42.1 million, an increase of RM2.4 million or 5.9% from RM39.7 million recorded in the same period last year.
Due to the successful disposal of discontinued operations at the end of FY23, the group’s consolidated PAT for Q3’24 is lower in comparison. The absence of RM21.9 million from discontinued operations contributed to a total PAT of RM61.7 million in Q3’23, decreasing overall PAT to RM42.1 million for Q3’24.
Touching on prospects, SEM said Malaysia’s gross domestic product grew by 5.3% in Q3 of 2024, supported by the strong expansion in overall investment activities, growth in goods exports, tourism and household spending.
In spite of the government’s diesel subsidy rationalisation, Malaysia’s inflation rate stayed stable at 1.9% in Q3’24, accompanied by a higher vehicle insurance inflation offset with a lower food and beverage inflation.
“The group remains committed to navigating these economic conditions by focusing on strategic initiatives that align with market trends.
“With the upcoming year-end festivities and considering the civil services’ Phase 1 salary adjustments in December, the group’s performance for Q4 of FY24 is anticipated to be relatively stronger in comparison with Q3 of FY24.
“Our focus for the convenience stores segment continues to be on the expansion of our 7-CAFé store format, which is important in expanding our product selections, improving in-store customer experience, and driving growth in the fresh food category,“ SEM noted.
“Our ongoing initiatives include the continued establishment of our 7-CAFés beyond Klang Valley, expanding into high-potential areas, and strengthening our partnership with our Japanese counterpart to broaden fresh food offerings, maximising commissary production yields by adopting best operational practices and discipline.
“Additionally, we are dedicated to expanding our private label portfolio as we seek to serve the growing number of value-driven brand-agnostic consumers who prioritise accessibly priced high-quality products over perceived brand value.
“In order to align with our customer-centric approach, we will continue our efforts in consumer research and insights, leveraging advanced analytics, social listening, and brand health surveys to improve our services and product offerings continuously.
“With regard to the Indonesian pharmaceutical business, we will continue to focus on the overall strategic roadmap, including store expansion plans, product range and pricing review, marketing activation and driving a consumer-centric operation in collaboration with our joint venture partner,“ SEM said.
