KUALA LUMPUR, May 29 — Convenience store chain 7-Eleven Malaysia has reported higher sales for the first quarter of 2020 by RM619.3 million, or 6.1 per cent overall.
Chief executive officer Colin Harvey said sales increased by RM35.6 million in the quarter, with the same-store sales up 1.9 per cent. 7-Eleven's profit after tax also increased by 1.9 per cent, and 34 new stores were opened nationwide, with 2,419 stores currently operating.
“Our strategy roadmap of strengthening assortment, supply chain, operational excellence, store base and digitally enabling the organization continues to bear fruit and despite challenging conditions ahead due to the Covid-19 pandemic,” he said in a statement.
Commenting on the quarter’s performance, Harvey said its 6.1 per cent growth is driven by new stores, higher same store sales and better consumer promotion activity
“Revenue from fresh food and tobacco segment grew more than 13 per cent and seven per cent, respectively. Gross profit improved by RM9.5 million or 5.2 per cent to RM192.5 million.
“This is mainly attributed to the increase in revenue and improved logistics expenses recovery. Other operating income increased by RM4.9 million or 17.2 per cent driven by increase in marketing income,” he said.
Similarly 7-Eleven's selling and distribution expenses also increased by RM700,000 or 0.4 per cent, while administrative and other operating expenses increased by RM9.8 million or 38.3 per cent.
“The group's performance is affected by the Covid-19 pandemic as our stores in the malls are closed while others are operating under restricted hours during the movement control order.
“While it is difficult to ascertain changes in consumer behaviour and how the economy will recover, we will continue to explore opportunities for growth in other channels and innovate in our product offerings,” Harvey said.
