AS with many other businesses, the 24-hour convenience store that Malaysians have been so reliant on is also affected during the restricted business hours during the movement control order (MCO).
However, that did not stop the group from registering a higher profit after tax (PAT) of RM13.5 mil, a 19.1% or RM2.2 mil increase compared to the first quarter of last year (1Q 2020).
This growth could be attributed from the group’s pharmaceutical segment, which contributed a revenue and PAT of RM208.1 mil and RM6.4 mil respectively in the current quarter.
Meanwhile, as mentioned earlier, the convenience stores segment recorded a decline in revenue of RM170.6 mil (or 27.5%), causing lower gross profits.
However, operating expenses also decreased for the current quarter by RM47 mil (or 24.8%), due to lower wages from a hiring freeze, lower inventory shrinkages, utilities, maintenance and rents.
Excluding expenses incurred for corporate exercise, the convenience store segment recorded a core PAT of RM10.2 mil.
Corporate exercise expenses comprise primarily professional fees, interest to finance the acquisition of Caring Group and fair value gain from investments in quoted shares, amounted to RM3 mil for the quarter
Looking forward, while the trading conditions and the overall consumer sentiment will continue to be influenced by the reintroduction of MCO 3.0 nationwide starting on May 2021 and the progress of National COVID-19 Immunisation Programme, the 7-Eleven Group will continue to explore opportunities for growth in other channels and innovation in its product offerings.
“We will also continue to focus on our customer’s needs, pursuing our core strategy pillars of operational excellence, cost management and commercial innovation, at the same time refreshing the 7-Eleven and Caring brand in the mind of customers through refreshed stores, innovations in our pricing, promotions, and developing exciting products,” the group said in a statement.
“Additionally, we note that the retail pharmaceutical segment proved a resilient and defensive sector which was bolstered by the pandemic, as consumer focus shifted towards positive health-seeking behaviours and preventive measures. Thus, we believe this will continue to augur well for the segment and the group.” – May 31, 2021
