Seven & i Holdings reports dip in net profit in latest fiscal results
Seven & i Holdings, the owner of the international 7-Eleven convenience store chain, reported a dip in its quarterly net profits in its latest financial results, but promised to continue it work in restructuring and growing its North American operations.
For the nine months ended on November 30, 2024, Seven & i Holdings reported total sales of 13,958,512 million yen as compared to 13,344,629 million yen for the same time last year. Total EBITDA for the nine months ended November 30, 2024, was 743,846 million yen as compared to the 796,280 million yen for the same time last year. Comprehensive income for the nine months ended on November 30, 2024, was 99,309 million yen as compared to the same time last year of 507,449 million yen.
The company’s president and representative director and CEO, Ryuichi Isaka in the written financial consolidated results released to the press, writes that in the “Japanese economy, there were signs of recovery in consumer spending as employment and income conditions improved although some areas remain stagnant.”
This has led to a clear divergence in consumption patterns, he added, with incomes of the young and the elderly increasing due to rising wages and the extension of the retirement age, but also an emerging awareness of the need to protect livelihoods, especially among those responsible for child rearing.
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“The North American economy remained robust overall thanks to the consumption of high-income earners, despite a persistently inflationary, elevated interest rate and deteriorating employment environment,” he continued. “In this context, there was a more prudent approach to consumption, in particular among middle- and low-income earners.”
In this environment, the Seven & i Group said it will continue to strive to be a world-class retail group centered around its food that leads retail innovation through global growth strategies centered on the 7-Eleven business and proactive utilization of technology.
To achieve this goal, the company will continue to follow the strategies it set for itself in its updated Medium-Term Management Plan announced on March 9, 2023.
The company’s overseas convenience store operations posted revenues from of 6,968,754 million yen and operating income of 156,940 million yen.
“In North America, 7-Eleven, Inc. is pursuing sustained business growth and enhanced capital efficiency in the context of a tough consumer spending environment, particularly among lower-and middle-income earners whose desire to save on food and other necessities has become even stronger,” Isaka wrote. “Also, there is a growing polarization of consumption due to a decline in labor incomes, which is a result of challenging employment conditions, as well as inflationary pressures and high interest rates. To this end, [7-Eleven, Inc.] has promoted four measures: Enhance Proprietary Products (including value offers), Accelerate Digital & Delivery, Improve Efficiencies and Cost leadership, and Grow and Enhance Store Network.”
This will also include a greater focus proprietary products in stores, new food offerings and a stronger push with its 7NOW delivery program, with the goal to have it expand to some 7,500 stores with sales of US$1B by fiscal year 2025.
