Despite the impact of GST and subdued consumer sentiment, 7-Eleven Malaysia recorded 4.8 per cent sales growth last year.
It had the same percentage growth for its fourth quarter. But profit fell.
The average spend per customer grew by 3 per cent for the year, with 204 store openings giving a total network of 2122 outlets as at December 31.
“We remain confident that continuous store expansion, refurbishment, promotional activity, improved merchandise mix and expanded in-store services will continue to deliver positive results despite the challenging headwinds,” says CEO Gary Brown.
“It has been a difficult year for everyone involved in the FMCG retail and manufacturing sector with weak consumer confidence and spending, as well as rising costs. However, we have continued to grow and expand our sales.”
For the fourth quarter, the group’s revenue grew to RM523.6 million (US$117.7 million).
Gross profit of RM160.7 million was in line with the corresponding period in the previous year, albeit with the positive impact of non-recurring one-off tobacco sales as a result of change in excise duty.
The profit before tax of RM7.8 million was a 39.3 per cent drop from RM12 million for the same period a year ago, despite positive sales growth.
For the 12 months to December 31, revenue grew to RM2.1 billion, while gross profit improved by 4.6 per cent.
Profit before tax of RM70.8 million dropped by 9 per cent despite the revenue growth, attributed to higher selling and distribution expenses from store expansion as well as the impact of the minimum wage increase from July 1.