7-Eleven Malaysia in the black for Q2 despite Covid-19 hit

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd recorded a net profit of RM1.03 million for the second quarter ended June 30 (Q2’20), from RM14.6 million in Q2’19 – reflecting the impact from the closure of stores during the movement control order (MCO) period, and limited operating hours during the current recovery MCO.

However, the group noted that it was still able to remain profitable during a difficult period due to the continuous implementation and improvement of its strategy roadmap in strengthening the key areas of assortment, supply chain, operational excellence, store base and digitally enabling the organisation.

Revenue for the quarter was higher at RM649.73 million, from RM588.8 million previously.

Operating expenses improved for the current quarter by RM28.2 million or 14.8% due to lower wages from a hiring freeze, lower utilities, maintenance, and rents. Additionally, higher marketing income of RM4.4 million or 13.7% cushioned the impact of lower gross profits.

In the pharmaceutical segment, the new acquisition of Caring Group in the current quarter contributed a revenue and profit after tax of RM139.1 million and RM5.8 million respectively. After taking into consideration the corporate exercise expenses of RM7.4 million, the group’s consolidated profit after tax stood at RM2.7 million.

For the six-month period, 7-Eleven’s net profit was RM12.4 million on revenue of RM1.3 billion, compared with RM25.7 million and RM1.2 billion respectively a year before.

Looking ahead, despite the restricted operating hours, the group expects trading conditions to gradually recover towards the second half of the year and will continue to explore opportunities for growth in other channels and innovate in its product offerings.

“We will also continue to focus on our customer’s needs, pursuing our core strategy pillars of operational excellence, cost management and commercial innovation, at the same time refreshing the 7-Eleven and Caring brand in the mind of customers though refreshed stores, innovations in our pricing, promotions, and developing exciting products,” it said.

source https://www.thesundaily.my/business/7-eleven-malaysia-in-the-black-for-q2-despite-covid-19-hit-CC3675488