7-Eleven’s 4Q net profit surges to RM221mil

KUALA LUMPUR: 7-Eleven Malaysia Holdings Bhd’s (SEM) focus for the convenience stores segment continues to be on the expansion of 7-Café store format.

“Anticipated to drive growth in our fresh food category, the 7-Café format will play a pivotal role in diversifying our sales mix and improving margins.

“On-going initiatives include the establishment of new 7-Cafés outside of Klang Valley, complemented by tactical plans to penetrate specific high potential locations,” SEM said in the notes accompanying its financial results.

SEM noted that its new commissary is now fully operational. With the capacity for 1,000 stores in the Klang Valley, it features advanced equipment and automation for efficient prepping, cooking, and packing, thereby enhancing the quality and consistency of its fresh food offerings.

“In the coming year, we have plans to introduce our My7E Online Store, offering on-demand delivery to our customers through our My7E Mobile App platform,” SEM said.

“We will also continue to enhance our supply chain planning and efficiency by implementing a transport management system, coupled with Digital E-Proof-of-Delivery, both of which are anticipated to simplify logistical operations across the value chain.

“Last but not least, in line with our customer-centric strategy, we will be conducting more regular consumer research and insights, leveraging the voice of the consumer through social listening and brand health studies to continuously improve our services and product offerings,” it added.

SEM said the disposal of its pharmaceutical segment provided an opportunity for the group to unlock and realise the value of its investment.

“In addition, cash proceeds from the disposal will be re-invested into strategic initiatives, including our convenience store segment, which are expected to contribute positively to the group’s future income,” it said.

In the fourth quarter to Dec 31, 2023, SEM’s net profit surged to RM221.1mil, or earnings per share of 19.93 sen compared with RM2.65mil, or 0.24 sen a year ago.

Revenue rose to RM694.5mil versus RM657.9mil last year.

For the full year, SEM posted a net profit of RM276.2mil on revenue of RM2.8bil.