KUALA LUMPUR: 7-11 Malaysia Holdings Bhd has completed the construction of its first self-operated ambient warehouse which will be fully operational by end of the year, in a bid to uplift its supply chain infrastructure.
In a filing to Bursa Malaysia, the company said the 300,000 sq ft facility was set up based on a full inventory put-away model and coupled with the automation of handling activities which would enable it to serve over 2,000 stores more efficiently.
Meanwhile, 7-11 Malaysia said its earnings for the third quarter ended Sept 30, 2023 (Q3 2023) rose 5.3 per cent year-on-year (YoY) to RM14.38 million from RM13.66 million in the same period last year, lifted by the convenience store segment.
The segment posted higher average per store day (APSD) sales and customer count as consumer spending and trading activities remained upbeat, fuelled by the festivities of Awal Muharram, Merdeka and several other public holidays in the current quarter.
Revenue for the quarter was up by 7.1 per cent YoY to RM705.31 million versus RM658.49 million in the corresponding quarter last year.
Revenue across all product categories in the convenience store segment grew in the current quarter resulting in higher gross profit by RM6.3 million or to RM221.1 million.
Its pharmaceutical segment recorded a revenue of RM344 million for the current quarter, an increase of 4.3 per cent, primarily driven by new stores sales contribution.
For the nine months ended Sept 30, 2023 (9M23), the company's net profit slipped 13.1 per cent to RM55.43 million versus RM63.81 million in the same period last year.
Revenue for the period rose RM2.09 billion from RM1.83 billion a year ago.
The company said it will remain steadfast in monitoring potential headwinds arising from global supply chain disruptions, workforce supply constraints and cost pressures on the back of an increase in minimum wages, rising interest rates and inflation.
The convenience store segment will continue to focus on the roll-out of its 7-Café store format, which entails improved product offerings and in-store customer experience.
"The 7-Café format is expected to contribute positively to the growth of our fresh food category.
"The construction of our new fresh food commissary is progressing well as scheduled and is expected to be fully operational by the end of this year.
"This commissary has a capacity to serve up to 1,000 stores in Klang Valley and with better equipment/machines aiding automation of key processes at this new facility, we envisage to elevate the quality and consistency of our fresh food offerings to our customers," it noted.
The proposed disposal of its pharmaceutical segment provides an opportunity for the company to unlock and realise the value of its investment.
"In addition, cash proceeds from the proposed disposal will be reinvested into strategic initiatives for our conveniences store segment, which is expected to contribute positively to the group's future income."