KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd's net profit fell 24 per cent to RM10.9 million in the third quarter (3Q) of financial year 2024 from RM14.38 million in same period last year on higher operating expenses.
Operating expenses increased by 8.6 per cent primarily due to higher store operations and logistics, including longer operating hours and expanded workforce in tandem with a net increase of 79 new stores.
However, revenue for the quarter increased by 5.5 per cent to RM744 million compared to RM705 million previously.
Despite a weaker quarter, the company anticipates stronger performance in the final quarter than the third quarter, supported by the upcoming year-end festivities and higher civil servant salaries.
7-Eleven said it currently has 2,611 stores after adding 79 new convenience stores and 285 7-CAFé store formats in the quarter.
"Our focus for the convenience stores segment continues to be on the expansion of our 7-CAFé store format, which is important in expanding our product selections, improving in-store customer experience, and driving growth in the fresh food category.
"Our ongoing initiatives include the continued establishment of our 7-CAFés beyond Klang Valley, expanding into high-potential areas, and strengthening our partnership with our Japanese counterpart to broaden fresh food offerings, maximising commissary production yields via adopting best operational practices and discipline," it said.
For the first nine months, 7-Eleven's net profit declined 20 per cent to RM44 million while revenue rose 4.3 per cent to RM2.09 billion.
7-Eleven's share price closed unchanged at RM2 on Thursday, valuing its market capitalisation at RM2.34 billion.