(NOV 21): Convenience store chain operator 7-Eleven Malaysia Holdings Bhd (KL:SEM) said on Thursday its net profit fell 24% in the third quarter from a year earlier as operating expenses grew faster than revenue.

Net profit for the three months ended Sept 30, 2024 (3QFY2024) was RM10.93 million, according to an exchange filing. Operating expenses rose 8.6% from store and logistics costs due to longer hours and expanded workforce with new outlets. Revenue for the quarter rose 5.5% to RM744.05 million.

Still, the company said it expects stronger performance in the final quarter of 2024 than the third quarter from the upcoming year-end festivities and higher civil servant salaries.

7-Eleven now has 2,611 stores after opening a net 79 new stores over the third quarter. The company also added 285 7-CAFé store formats, bringing the total count to 471 at the end of September.

“Our focus for the convenience stores segment continues to be on the expansion of our 7-CAFé store format, which is important in expanding our product selections, improving in-store customer experience, and driving growth in the fresh food category,” 7-Eleven said.

For its first nine months, net profit was RM44.27 million, down 20% compared with the same period last year following the sale of its pharmacy business under the Caring brand at the end of 2023 as well as due to an 8.5% increase in expenditure on store rental costs, depreciation and maintenance.

Revenue for the period was RM2.18 billion, up 4.3% versus the same nine months in 2023.

The company did not declare any dividend for the quarter.

Shares of 7-Eleven closed unchanged at RM2 on Thursday ahead of the results announcement. The stock has remained relatively steady throughout 2024.