HIGHLIGHTS
• 3Q18 Total sales growth of 1.0% and year to date (YTD) 3Q18 total sales growth of 1.3%.
• 3Q18 Net profit growth of 4.1% and YTD 3Q18 Net profit growth of 13.3%
• Gross Profit Margin continues to improve versus last year.
• Continued store expansion bringing the total network to 2,259 stores.
Comments from Chief Executive Officer – Colin Harvey
I am pleased with our net profit growth of 27.6% against the previous quarter. However, this is only the first step in the right direction towards where the organization should be, and there is scope for improvement. I am confident that our strategy roadmap focussed on strengthening the key areas of, assortment, supply chain, operational excellence, store base, and digitally enabling the organization will bear fruit in terms of financial performance, and overall customer shopping experience. I look forward to the challenges ahead in ensuring that 7-Eleven Malaysia remains the customers first choice convenience store. ‘
For the 3rd Quarter ended 30 September 2018
The Group’s revenue for the current quarter of RM568.5 million grew by RM5.4 million or 1.0% against the corresponding quarter’s revenue in the previous year of RM563.1 million. The growth in revenue continued to be driven by the growth in new stores, higher average spend per customer and better consumer promotion activity.
Gross profit of RM184.1 million improved by RM5.4 million or 3.0% compared to the corresponding quarter in the previous year. This was mainly attributed to the increase in revenue and improvement in gross margin by 0.7% points. The improvement in gross margin was attributed to higher gross profit margins across most categories.
Selling and distribution expenses for the quarter increased by RM6.7 million or 4.0% against the corresponding quarter of the previous year. This was mainly due to new store expansion resulting in higher staff costs, rental costs, store depreciation and maintenance expenses.
The increase in revenue, gross margin improvement and other operating income resulted in the Group’s profit after tax of RM16.8 million, an increase of RM0.6 million or 4.1% as compared to the corresponding quarter in previous year.
For the 9 months ended 30 September 2018
For the 9 months ended 30 September 2018, the Group’s revenue of RM1.66 billion grew RM21.0 million or 1.3% against the corresponding period in the previous year of RM1.64 billion. The growth in revenue was driven by the growth in new stores and consumer promotion activity.
Gross profit improved by RM20.6 mil or 4.0% compared to the corresponding period in the previous year. This was mainly attributed to the revenue growth and gross profit margin expansion of 0.9% points. Other operating income grew by RM7.7 million or 8.2% compared to the corresponding period in the previous year.
The Group’s profit after tax recorded RM4.6 million or 13.3% increased against the corresponding period in the previous year driven by higher profit contribution amongst most product categories and higher other operating income.
Future Prospects
The Board of Directors is of the view that the trading conditions for the next quarter are expected to improve with the anticipated heightened consumer sentiment. We expect to see further improvements in the next quarter by pursuing our core strategy pillars of Operations Excellence, Cost Management and Commercial Innovation.
