7-Eleven Malaysia 2019 sales hit record RM2.36 billion

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s total sales hit a record high of RM2.36 billion last year.

For the full-year period ended Dec 31, 2019, 7-Eleven’s net profit grew 5.4% to RM54.06 million from RM51.31 million, underpinned by the increase in revenue, favourable sales mix and higher marketing income.

Revenue stood at RM2.36 billion, up 6.4% from RM2.22 billion, driven by the growth in new stores, higher customer count, higher average spend per customer and better consumer promotion activity.

For the fourth quarter alone, 7-Eleven’s net profit fell 9.1% to RM11.35 million against RM12.49 million in the same quarter a year ago, with revenue rising 6.8% to RM592.73 million from the RM555.21 million achieved previously.

7-Eleven CEO Colin Harvey said the group managed to delivered full-year same-store-sales growth of 2.5% and net profit growth of 5.4% despite accounting for the impact of MFRS 16 adoption.

Without the adoption, net profit would have grown 21.8%.

“We opened 41 stores in the quarter and crossed the 2,400 mark ending on 2,411 stores for the year. Costs were kept in check reducing to 28.4% despite minimum wage increases,” he said in a statement yesterday.

The convenience store group is confident that continuous implement-ation and improvement of its strategy roadmap in strengthening the key areas of assortment, supply chain, operational excellence, store base and digitally enabling the organisation will con-tinue to deliver positive results despite challenging headwinds.

“The board of directors is of the view that the trading conditions for the next quarter are expected to be stable,” it added.