KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd’s net profit in the fourth quarter ended December 2017 jumped 66.5 percent to RM15.86 million from RM9.52 million in the same period in 2016 driven by increase in revenue, gross margin improvement and higher other operating income.
The group’s revenue for the quarter of RM546.2 million grew RM22.6 million or 4.3 per cent against the corresponding quarter’s revenue in the previous year of RM523.6 million.
The growth in revenue was driven by the growth in new stores, higher average spend per customer and better consumer promotion activity.
The company said 126 new stores were opened last year and 23 stores were closed resulting in a total store network of 2,225 stores as at the end of December last year.
On its performance year-to-date, its net profit was four per cent lower than in 2016 due to operational issues faced by its third party logistics provider, which had affected the company in the first quarter of last year.
7-Eleven said the trading conditions for the coming year are expected to remain challenging.
“We however expect to see continued improvements in the next quarter by pursuing our core strategy pillars of Operations Excellence, Cost Management and Commercial Innovation,” it added.