7-Eleven Malaysia 1Q net profit up 23.7% on strong sales growth

by **Cals** Fri 29 May 2015, 00:18

7-Eleven Malaysia 1Q net profit up 23.7% on strong sales growth

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By Sulhi Azman / theedgemarkets.com | May 28, 2015 : 9:59 PM MYT

KUALA LUMPUR (May 28): 7-[size=14]Eleven Malaysia Holdings Bhd's net profit rose 23.7% to RM14.38 million or 1.17 sen per share for the first quarter ended March 31, 2105 (1QFY15) from RM11.63 million or 1.11 sen per share a year ago, driven by sales growth, a 1.9% expansion in gross profit margin and a 14.8% growth in other operating income.

Quarterly revenue advanced 11.5% to RM504.99 million in 1QFY15 from RM453.07 million in 1QFY14, on growth in new stores, improved merchandise mix and consumer promotion activity.

The convenience store operator did not declare any dividend for the quarter under review.

“The board of directors is of the view that despite a general softening in the retail market since the implementation of the goods and services tax (GST) on April 1, 2015, we are confident about the future growth prospects for the remaining period of the current financial year as we are confident of holding onto our market leading position while our new store expansion plan remains on track,” 7-Eleven Malaysia said in a filing with Bursa Malaysia this evening.

7-Eleven Malaysia has more than 1,500 stores nationwide.

The stock has gained 29.77% from RM1.31 on Jan 12, 2015 to close at RM1.70 today, with 441,700 shares traded, for a market capitalisation of RM2.1 billion.

7-Eleven Malaysia was relisted on Bursa Malaysia on May 30 last year at RM1.38 per share, raising RM250.31 million.

Of this, the group said it has utilised RM139.71 million in 1QFY15, leaving a balance of RM110.596 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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