Seven & i Holdings Reports 35% Drop in Net Profit for Q1

by webmaster

Shares of Seven & i Holdings, the Japanese operator of 7-Eleven and other retail stores, plunged on Friday morning following the release of its first-quarter financial results. The company reported a 35% decline in net profit, primarily due to weakness in its overseas convenience-store business.

Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >

Disappointing Results

Seven & i Holdings stated that its net profit for the quarter ended May 31 fell to Y42.18 billion ($305.5 million) from Y65.04 billion in the same period last year. This figure fell short of analysts’ expectations, with a poll conducted by FactSet estimating a net profit of Y61.08 billion.

Impact on Share Prices

As a result of the disappointing earnings report, the company’s shares plummeted by 6.1% to 5,788 yen, reaching a low of 6.4% earlier in the day.

Factors Contributing to Decline

The decline in operating profit for Seven & i Holdings’ overseas convenience-store business played a significant role in the drop in net profit. Operating profit for this segment decreased by 52% to Y20.98 billion. The decline can be attributed to falling retail gas prices and a narrower profit margin for gas sales.

However, the company did mention that the profit margin for gas sales has shown improvement since April.

Future Projections

Despite the disappointing results, Seven & i Holdings has maintained its revenue and net profit projections for the fiscal year ending in February 2024. The company anticipates a 5.6% decrease in revenue to Y11.154 trillion, while projecting a 1.4% increase in net profit to Y285.00 billion.

Conclusion

The first-quarter financial results for Seven & i Holdings reflect a notable decline in net profit, primarily driven by weakness in its overseas convenience-store business. While the company’s stock prices have taken a hit, it remains optimistic about the future, as indicated by its unchanged projections for the fiscal year ending in February 2024.

Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >

Related Articles

Leave a Comment

+ 32 = 34