Kuala Lumpur: 7-Eleven Malaysia Holdings Bhd's pre-tax profit fell to RM70.82 million for the financial year ended Dec 31, 2016 from RM77.84 million in 2015. Revenue, however, rose to RM2.1 billion from RM2.01 billion.In a filing to Bursa Malaysia, the chain convenience store operator attributed the lower profit to higher selling and distribution expenses from new store expansion, as well as, the impact of the minimum wage increase effective July 1 last year.The higher revenue was driven by growth in new stores (total stores as at end-2016: 2,122), improved merchandise mix and consumer promotion activity.
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For the fourth quarter, 7-Eleven Malaysia's pre-tax profit declined to RM12.02 million from RM19.81 million in the same quarter of 2015, on the back of higher revenue of RM523.61 million from RM499.74 million.
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On prospects, 7-Eleven Malaysia Holdings said trading conditions for the next quarter would likely remain challenging, due to continued weak consumer spending and current macroeconomic conditions.
