KUALA LUMPUR (Feb 26): 7-Eleven Malaysia Holdings Bhd saw its net profit slump 60.84% to RM4.44 million in the fourth quarter ended Dec 31, 2020 (4QFY20), from RM11.35 million a year earlier. Earnings per share fell to 0.39 sen from 0.99 sen. 

Quarterly revenue eased 0.22% to RM591.42 million from RM592.73 million, the group’s bourse filling showed. 

The convenience store operator said the re-imposition of the conditional movement control order (CMCO) from October last year had adversely affected its operations in 4QFY20. 

Higher selling and distribution expenses, administrative and other expenses, finance costs and income tax expenses also dented its earnings performance  for the current quarter, it added.

On a quarter-on-quarter basis, the net profit was 65.6% lower than the RM12.92 million reported for 3QFY20, while revenue declined 12.66% from RM677.12 million.

The 4QFY20 earnings, however, compare favourably with the net profit of RM1.03 million reported in 2QFY20, after the MCO was imposed from March to May last year.

For FY20 as a whole,  7-Eleven’s net profit came in at RM29.77 million, down 44.94% from RM54.06 million in FY19, while cumulative revenue rose 7.48% to RM2.54 billion from RM2.36 billion.

On prospects, 7-Eleven expects the trading condition to gradually recover,  amid the ongoing national Covid-19 immunization programme.

The group will also continue to explore opportunities for growth in other channels and innovate in its product offerings.

“We will also continue to focus on our customer’s needs; pursuing our core strategy pillars of operational excellence, cost management and commercial innovation, and at the same time refreshing the 7-Eleven and Caring brand in the mind of customers, through refreshed stores and innovations in our product offering,” it added.

Shares of 7-Eleven rose two sen or 1.56% to close at RM1.30 today, valuing the group at RM1.6 billion. There were 502,3000 shares traded.