7-Eleven Malaysia Holdings Bhd recorded a 9.11% lower net profit to RM11.3 mil for the fourth quarter ended Dec 31, 2019 from RM12.5 mil a year ago despite posting a 6.8% higher revenue of RM592.7 mil versus RM555.2 mil.
The growth in revenue continued to be driven by higher customer count, better consumer promotion activity and strong growth in fresh food sales.
For the full year, its net profit grew 5.36% to RM54.1 mil from RM51.3 mil while revenue rose to RM2.4 bil from RM2.2 bil.
CEO Colin Harvey said: “We are pleased that we have been able to deliver full-year same-store sales growth (SSSG) of 2.5% and year-to-date (YTD) net profit growth of 5.4% during the fourth quarter considering the impact of MFRS 16 adoption.
“Without this adoption, our net profit would have grown by 21.8%. We opened 41 stores in the quarter and crossed the 2,400 mark ending with 2,411 stores for the year. Costs were kept in check reducing to 28.4% (29% in 2018) despite the increase in minimum wage.
“We are confident that continuous implementation and improvement of our strategy roadmap in strengthening the key areas of assortment, supply chain, operational excellence, store base and digitally enabling the organisation will continue to deliver positive results despite challenging headwinds as we look forward to ensuring that 7-Eleven remains as Malaysian consumers’ preferred convenience store brand.”
The company will continue to focus on customers’ needs, pursuing its core strategy pillars of operational excellence, cost management and commercial innovation while refreshing the 7-Eleven brand in the mind of customers though refreshed stores, innovations in pricing, promotions, and developing “exciting” products. – March 4, 2020
