7-Eleven’s Thai operator CP ALL and 7-Eleven Malaysia have revealed FY2015 results, with their revenue growing by 9.3% and 3.9% respectively.
CP ALL strong performance and further expansion plans
CP ALL, the 7-Eleven franchise holder in Thailand, sees FY2015 consolidated revenue up 9.3% to THB406bn (US$11.4bn) and net profit increasing by 34.3% to THB13.7bn (US$380m).
The group currently operates 8,832 7-Eleven stores, with 705 being added in the reporting period. Apart from store expansion, the positive results were also driven by the improved like-for-like sales and higher gross margin rates for non-food products.
To keep the momentum in 2016, CP ALL will continue to open around 700 stores and explore e-commerce and e-payment solutions. All Café (a coffee corner in store), as well as health & beauty, are new areas where the Group is looking to drive growth.
7-Eleven Malaysia: top line positive, bottom line struggles
7-Eleven Malaysia has reported that its annual revenue increased 6% to MYR2,006m (US$482.9m). While the retail market in Malaysia has been challenging due to the implementation of the Goods and Services Tax (on April 1, 2015) and weak consumer confidence, 7-Eleven Malaysia’s growth was driven by new store openings, improvements to merchandise mix and promotional activity.
Despite positive revenue growth, its net profit contracted 12% to MYR55.8m (US$13.4m), because of additional costs and expenses incurred by the opening of new stores, including higher staff costs, rental costs, store depreciation expenses and maintenance costs.
With over 1,600 stores in Malaysia, 7-Eleven Malaysia believes that trading conditions for the current quarter will remain challenging. “Despite this, we are positive of holding on to our market leading position, while our new store expansion plan remains on track,” says the company.
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