For third quarter of 3QFY2022, 7-Eleven registered Revenue of RM988.2m, an increase of RM308.0m or +45.3% and Core profit of RM22.9m, an increase of RM6.9m or +43.3% for the current quarter ended 30 September 2022.
In comparison, during the corresponding quarter last year, the country was transitioning out of a full movement control order to the initial phases of the National Recovery Plan, where trading
conditions were still impeded by strict SOPs.
The Convenience Stores segment recorded higher Average Per Store Day Sales and customer count as consumer spending and trading activities remained buoyant in the current quarter, leading to a positive SSSG of +58.7%. In this regard, Revenue increased by RM253.9m or +62.7% higher as compared to previous year corresponding quarter. Notably, Revenue across all product categories grew in the current quarter, resulting in higher Gross Profit by RM92.7m or +75.9% to RM214.8m.
In addition, Gross Profit margins improved by +240 basis points, mainly due to lower contribution of tobacco sales.
We had in the current quarter, successfully rolled twenty-one (21) of our 7-Café store format,
bringing a total count of fifty two (52) 7-Café stores for the period ended 30 September 2022. Total store count stood at 2,446 stores, a net increase of +41 stores.
Operating Expenses increased by RM60.4m or +42.0%, driven by higher store operation related expenses vis-a-vis longer operating hours and minimum wage effect. Excluding corporate exercise expenses, the Convenience Store segment recorded a Core Profit After Tax of RM15.3m, an increase of RM16.4m or +1,415.5% as compared to previous year corresponding quarter.
The Pharmaceutical segment recorded a Revenue of RM329.7m for the current quarter, an increased of RM54.1m or +19.6%. Gross Profit margins declined from 21.8% to 18.5% mainly due lower off-take of higher margin products such as COVID-19 test-kits and face mask. As a result, Core Profit After Tax decreased by RM9.5m or -55.6% to RM7.6m for the quarter. Total store count stood at 212 stores, a net increase of +29 stores.
Corporate exercise expenses of RM6.9m primarily consists of finance costs for the acquisition of
Caring Group. The Group’s Consolidated Profit after Tax for the current quarter after corporate
exercise expenses is reported at RM15.9m, an increase of RM7.0m or +79.1%.
Nine-Month Period Performance (9M2022) versus Corresponding Period Last Year. Revenue for the Convenience Stores segment increased by RM536.3m or +41.6% to RM1,826.7m; with all product categories recording higher Revenue, thereby resulting in higher Gross Profits. Excluding corporate exercise expenses, the Convenience Store segment recorded a Core Profit After Tax of RM56.8m, an increase of RM42.3m or +292.4%.
Revenue from the Pharmaceutical segment increased by RM221.5m or +30.6% to RM945.2m,
while Profit After Tax closed at RM36.3m, an increase of RM6.0m or +20.0%.
The Group’s Consolidated Profit After Tax for the period ended 30 September 2022 after corporate exercise expenses is reported at RM76.0m, an increase of RM50.0m or +191.7%.
