DESPITE its stores operating under strict standard operating procedures (SOPs) and shorter operating hours affecting customer footfalls under the movement control order (MCO 3.0), 7-Eleven Malaysia Holdings Bhd saw its revenue surging 35.23% to RM676.7 mil in its 2Q FY2021 ended June 30, 2021 from RM649.7 mil a year ago.
“In comparison to the previous year’s corresponding quarter, the country was in a less restrictive conditional MCO and recovery MCO which started on June 10, 2020,” the single largest convenience store chain in Malaysia said in a filing to Bursa Malaysia.
While revenue for convenient store segment declined by 14.5% to RM436.7 mil in in 2Q 2021 from RM510.63 mil (2Q FY2020), net profit rose RM1.2 mil to RM5.46 mil in 2Q FY2021 from RM4.28 mil in 2Q FY2020.
“Most product categories except fresh foods recorded lower revenue while sales mix improved, resulting in lower gross profits of RM9.8 mil or 6.9%,” the convenience store operator pointed out.
“Operating expenses decreased for the current quarter by RM13.1 mil or 8.1% due to lower wages from better manpower planning, shorter operating hours and lower shrinkages.”
In addition, its pharmaceutical segment recorded a higher net profit of 15.7% to RM6.75 mil, mainly driven by higher revenue of RM100.9 mil (72.5%) to RM240 mil (2Q FY2020: RM130.1 mil).
The acquisition of The Pill House and Wellings contributed revenue of RM66.8 mil.
“With consumers focusing on their well-being and overall health, our retail pharmaceutical segment proved to be a resilient and defensive acquisition for the group amid this pandemic,” 7-Eleven remarked.
On prospects, though consumer sentiments remain a challenge for our convenience stores during these trying times, the group is hopeful that the combination of a successful implementation of the National Recovery Plan (NRP) as well as the progress of the National Immunisation Programme will help with overall trading conditions.
“We will continue to focus on our customer’s needs by pursuing our core strategic pillars for both segments of our group,” it concluded.
At close today, 7-Eleven was unchanged at RM1.53 with 25,500 shares traded, thus valuing the company at RM1.89 bil. – Aug 27, 2021
