7-Eleven’s Q3 earnings up 38%

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd’s net profit for the third quarter ended Sept 30, 2017 rose 38.14% to RM16.10 million from RM11.65 million a year ago due to higher revenue, gross margin improvement and other operating income.

In a filing with Bursa Malaysia yesterday, the group said its gross margin improved by 0.9 percentage points due to higher sales contribution from the categories with higher gross profit margins.

Revenue for the quarter rose 2.8% to RM563.12 million from RM547.81 million a year ago driven by growth in new stores, higher average spend per customer and better consumer promotion activity.

For the nine months ended Sept 30, 2017, net profit fell 19.70% to RM34.25 million from RM42.66 million a year ago due to higher selling and distribution expenses which increased 11.1% and higher administrative and other operating expenses which increased 5.8%.

However, revenue for the period rose 3.87% to RM1.64 billion from RM1.58 billion a year ago due to growth in new stores, improved merchandise mix and consumer promotion activity. The group expects to see continued improvements in the next quarter by pursuing its core strategy pillars of operations excellence, cost management and commercial innovation despite trading conditions that are expected to remain challenging.