7-Eleven Malaysia says its quarterly profit soared 70 per cent on the back of an aggressive store expansion program.
The listed company operated 1774 stores at the end of the December quarter – 200 more than at the end of 2013. It posted a profit of RM17.9 million (US$4.94 million) for the quarter compared with RM10.5 million ($2.9 million) a year earlier. Revenue rose 14 per cent to RM481.1 million ($132.7 million).
Full year net profit was up 44 per cent to RM63.7 million ($17.6 million) fuelled by growing sales and gross profit margin and store network expansion.
Sales rose 12 per cent year on year to RM1.9 billion ($524.2 million).
7-Eleven Malaysia said in a profit statement it is positive about the year ahead, despite a softening in consumer sentiment (in part driven by wariness of the introduction of GST on April 1).
“The continuing roll-out of new stores to increase the existing network as well as the on-going store refurbishment programme will have a positive impact. In addition to this, increased promotional and merchandising activities along with the expansion of in-store services and a further expansion of the group’s food and beverage offerings at store level will help drive revenue and profit growth,” the company said.