KUALA LUMPUR (Nov 24): 7-Eleven Malaysia Holdings Bhd’s net profit rose 5.31% to RM14.38 million in the third quarter ended Sept 30, 2023 (3QFY2023) from RM13.66 million a year earlier, on the back of increased customer count in its convenience store segment.

However, profit was down by 43.3% quarter-on-quarter from RM25.36 million in 2QFY2022 amid the discontinuance of its pharmaceutical segment's operations.

This refers to the ongoing sale of the pharmaceutical segment, which is expected to be completed in the financial year ending Dec 31, 2023 (FY2023), the group told Bursa Malaysia.

It is worth noting that 7-Eleven is disposing of its 75% stake in Caring Pharmacy Group Bhd for RM675 million, to BIG Pharmacy Holdings Bhd.

The group’s revenue for 3QFY2023 increased by 7.11% to RM705.31 million from RM658.49 million in 3QFY2022.

However, its revenue declined by 33.87% from a record high of RM1.07 billion in 2QFY2023.

For the nine months ended Sept 30 (9MFY2023), 7-Eleven’s net profit was down 13.13% to RM55.42 million from RM63.81 million a year earlier amid lower contribution from its pharmacy segment, although revenue expanded 14.4% to RM2.09 billion from RM1.83 billion a year earlier.

Despite the continued recovery in trading conditions and retail sentiment, the group said it will remain steadfast in monitoring potential headwinds arising from global supply chain disruptions, workforce supply constraints and cost pressures on the back of an increase in minimum wages, rising interest rates and inflation.

It said the convenience store segment will continue to focus on the roll-out of its 7-Café store format, which entails improved product offerings and in-store customer experience and is expected to contribute positively to the growth of the group’s fresh food category.

“We will also continue our efforts to enhance our product assortment, fresh food and private labels to drive stronger sales mix for margin improvement,” said 7-Eleven.

Essentially, the proposed disposal of the pharmaceutical segment provides an opportunity for the group to unlock and realise the value of its investment, where cash proceeds from the disposal will be re-invested into strategic initiatives for the convenience store segment.

“Notable key tactical investments in the immediate pipeline includes continued expansion of our 7-Café stores network; upgrading of POS (point-of-sale) systems for our convenience stores; and setting up our self-operated distribution centre in Shah Alam,” the group added.

Shares of 7-Eleven finished up four sen or 2.04% at RM2, valuing the group at RM2.34 billion. Year-to-date, the counter has risen over 12%.