PETALING JAYA: 7-Eleven Malaysia Holdings Bhd registered an all-time high quarterly revenue of RM1,066.4 million for the second quarter of financial year 2023 (Q2’23), an increase of RM122.8 million or 13% year-on-year.
Core profit declined by RM1.3 million or 4.% to RM32.6 million for the quarter, mainly due to lower profit generated by the pharmaceutical segment.
The convenience stores segment recorded higher APSD and customer count as consumer spending and trading activities remained upbeat, fueled by the festivities of Hari Raya, leading to a positive SSSG of 10.5%.
Revenue increased by RM83.7 million or 13% higher compared to the previous year’s corresponding quarter. Notably, revenue across all product categories grew in the current quarter, resulting in higher gross profit by RM16.6 million or 7.8% to RM229.3 million.
Operating expenses increased by RM17.6 million or 8.8%, driven by higher store operation-related expenses vis-a-vis longer operating hours and with 73 net new stores added, an expansion in the workforce to meet anticipated business demand also contributed to this increase.
Excluding corporate exercise expenses, the convenience store segment recorded a core profit after tax of RM26 million, an increase of RM1 million or 4.2% compared to the previous year’s corresponding quarter.
In the current quarter, the group successfully rolled out 28 new 7-Café stores, bringing the total to 144 7-Café stores for the period ended June 30, 2023. Total store count stood at 2,499.
The pharmaceutical segment recorded a revenue of RM338.5 million for the current quarter, an increase of RM39.1 million or 13.1%, primarily driven by new stores sales contribution. Core profit for the segment closed at RM6.6 million, a decline of RM2.4 million or 26.6% compared with the previous year’s corresponding quarter.
The group’s consolidated profit after tax for the current quarter after corporate exercise expenses is reported at RM27.1 million, a decrease of RM1.7 million or 5.8%.
Notwithstanding the continued positive turnaround in trading conditions and retail sentiment, the group is cognizant and will remain steadfast in monitoring potential headwinds arising from global supply chain disruptions, workforce supply constraints and cost pressures on the back of an increase in minimum wages, rising interest rates and inflation; essentially, it will take appropriate measures to mitigate these impacts, as necessary.
The convenience store segment will continue to focus on the rollout of its 7-Café store format, which entails improved product offerings and in-store customer experience. The 7-Café format is expected to contribute positively to the growth of its fresh food category.
It will also continue its efforts to enhance their product assortment, fresh food and private labels to drive stronger sales mix for margin improvement.
