PETALING JAYA: Convenience store chain 7-Eleven Malaysia Holdings Bhd posted improved earnings for the third quarter ended Sept 30, 2022 on revenue of RM988.21 million, up from RM680.22 million in the previous corresponding quarter.
Net profit for the quarter came up to RM13.66 million, against RM1.44 million for the same quarter last year.
The improvement was due to the country transitioning out of a full movement control order to the initial phases of the National Recovery Plan, although trading conditions were affected by strict standard operating procedures.
The convenience stores segment recorded a higher average per store day and customer count as consumer spending and trading activities remained buoyant in the current quarter, leading to a positive same-store sales growth of 58.7%.
The pharmaceutical segment recorded a revenue of RM329.7 million for the current quarter, an increase of RM54.1 million or 19.6%.
Net profit for the nine-month period was RM63.81 million, up from RM14.23 million for the corresponding period a year ago.
Revenue amounted to RM2.77 billion from RM2.01 billion over the same period a year ago.
Revenue for the convenience stores segment increased by RM536.3 million or 41.6% to RM1.83 billion, with all product categories recording higher revenue, thereby resulting in higher gross profits.
Notwithstanding the continued positive turnaround in trading conditions and retail sentiment, the group is cognisant and will remain steadfast in monitoring potential headwinds arising from global supply chain disruptions, workforce supply constraints and cost pressures on the back of minimum wages, rising interest rates and inflation, it said in a filing with Bursa Malaysia. It will take appropriate measures to mitigate these impacts.
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. In addition, the 7-Café format is expected to contribute positively to the growth of its fresh food category. It will also continue efforts to enhance its product assortment, fresh food and private labels to drive stronger sales mix for margin improvement/sustenance.
The group launched its chilled distribution centre on Aug 1, 2022, which has a capacity to serve up to 1,000 stores in the Klang Valley. This cold-chain infrastructure will complement the growth strategies of its perishable and fresh food offerings.
The pharmaceutical segment will continue to strengthen its market share together with The Pill House and Wellings group. Wellings has opened nine stores in Indonesia via its joint venture with PT Era Caring Indonesia.