7-Eleven Operator’s second quarter net profit beats analysts’ estimate – Earnings Review

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By Kosaku Narioka


Seven & i Holdings Co. released its second-quarter results on Thursday. Here’s what you need to know.


NET PROFIT: Net profit rose 28% to 136.09 billion yen ($940.6 million) for its first half ended August 31. calculation shows. Second-quarter net profit beat the 68.81 billion yen estimate expected in an analyst poll by FactSet.


REVENUE: First-half revenue increased 55% to 5.652 billion yen. Second-quarter revenue was 3.204 billion yen, taking into account first-quarter revenue of 2.447 billion yen. That missed the second-quarter revenue estimate of 3.246 billion yen in the FactSet survey.


WHAT WE WATCHED:

–7-ELEVEN: The first-half operating profit of its convenience store business in Japan rose 2.7% to 126.71 billion yen, while that of its overseas convenience store business increased more than doubled to 115.60 billion yen from 57.20 billion yen per year. year earlier. Operator 7-Eleven said retail gasoline prices rose sharply due to higher crude oil prices, which helped boost revenue for its overseas convenience store business.

–OUTLOOK: Seven & i raised its revenue and net profit guidance for the fiscal year ending in February, in part due to higher profits from its overseas convenience store business. He now expects revenue to rise 33% to 11.646 billion yen and net profit to climb 25% to 264.00 billion yen.

— DEPARTMENT STORE: Its department store and specialty store business posted an operating profit of 465 million yen in the first half, compared with an operating loss of 7.77 billion yen a year earlier. Seven&i reaffirmed that its department store business is under strategic review.


Write to Kosaku Narioka at [email protected]

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