7-Eleven posts higher profits but warns of spending slump
Shoppers have pulled back spending at 7-Eleven convenience stores and petrol stations in the first three months of the new financial year as cost pressures continue to hit spending, accounts filed by the retailer show.
Pre-tax profits for the 12 months to June 30 rose from $36.6 million to $85.1 million, the country’s largest convenience retailer said, with sales up across all categories except cigarettes, which continue to decline.
The latest accounts, lodged with the Australian Securities and Investments Commission on Friday, come amid a sales process for 7-Eleven.
The company, controlled by the Withers and Barlow families, appointed Perth-based boutique Azure Capital and law firm Ashurst in May. The Australian Financial Review’s Street Talk reported that Japan’s Seven & i Holdings, which owns the 7-Eleven brand globally, was among the interested parties. It had engaged Bank of America and Nomura.
The owners of 7-Eleven are putting the business up for sale. Mark Merton
While the sale of merchandise in-store such as snacks and drinks were hit in the three months to the end of June due to the cost-of-living crunch, revenue across the 7-Eleven network increased by 5.5 per cent to $5.32 billion year-on-year. That figure also includes franchise fees and split of franchising revenue, according to documents filed by Convenience Group Holdings.
“Merchandise performance is being adversely impacted by volume and transaction declines as increased cost-of-living pressures and worsening economic conditions take hold,” the accounts read, warning about the outlook in the early months of the new financial year.
The total petrol and convenience market shrank by 4.4 per cent.
7-Eleven operates 508 third-party franchised stores as at
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