Review of Current Quarter Performance versus Corresponding Quarter Last Year  

The Convenience Stores had in 4Q-2024, recorded a Revenue of RM745.5m, an increase of RM51.2m  or +7.4% as compared to RM694.3m achieved in the same quarter last year. The growth in Revenue  was mainly driven by the net addition of 69 new stores as compared to the corresponding quarter last  year, along with the boost in sales from year-end holiday season, leading to a higher APSD.  

As compared to the same quarter last year, we had successfully rolled out 289 of our 7-CAFé store  formats, driving up the total count to 536 7-CAFé stores in 4Q-2024. We had introduced a range of  affordably priced Ready-To-Eat (“RTE”) packed meals, prepared with high-quality locally sourced  ingredients which had contributed positively to the Fresh Food sales participation as compared to a  classic store in 4Q-2024.  

Operating Expenses decreased by RM35.6m or -12.2%, primarily due to lower staff cost, reduced  spending on media advertising and lower professional fees in 4Q-2024.  

Excluding the corporate exercise expenses which comprise share of losses and impairment losses of  the investment in joint ventures and tax expenses arise from the corporate investments, the Group  recorded a normalised PAT from continuing operations amounting to RM9.0m against the loss after  tax last year same quarter.  

Review of 12 Months Period Performance versus Corresponding Period Last Year  

The Convenience Stores recorded revenue of RM2,925.5m for the year ended 31 December 2024,  reflecting an increase of RM142.0m or +5.1% compared to RM2,783.6m in last year. This Revenue  growth was accompanied by a Gross Profit of RM902.7m, up RM36.7m or +4.2%, maintaining a stable  Gross Profit margin of 30.9%.  

Operating Expenses for the Convenience Stores increased by RM19.3m or +2.1%. This rise is  attributed to higher store rental costs and utilities as a result of a broadened retail network, increase in  store depreciation, and including IT and non-IT maintenance expenses. 

Excluding the corporate exercise expenses which comprise share of losses and impairment losses of the  investment in joint ventures and tax expenses arise from the corporate investments, the Group recorded  a normalised PAT from continuing operations amounting to RM53.2m against the loss after tax last  year.  

PROSPECTS  

Malaysia’s retail sector demonstrated resilience in 4Q-2024, driven by robust growth in overall  investment activities, goods exports, tourism and household spending. The nation’s gross domestic  product is forecasted to grow within 4.5%-5.5% in 2025. Key factors expected to support the retail  sector include higher civil servant salary and a rise in the minimum wage from RM1,500 to RM1,700  per month, both of which are expected to bolster consumer spending. However, external headwinds,  such as the rationalization of RON95 fuel subsidies in June 2025 and a potential hike in the base  electricity tariff for Peninsular Malaysia in July 2025, may lead to inflationary pressures potentially  affecting lower-and middle-income households. Despite these hurdles, the Group remains committed  to its strategic initiatives that align with market trends. With the anticipated net increase in overall  consumer spending, the Group is optimistic for a stronger performance in 2025.  

Our focus for the Convenience Stores segment remains on the expansion of our 7-CAFé store format,  which is essential for broadening our product selections, enhancing in-store customer experience, and  driving growth in the fresh food category. A notable accomplishment to date includes the opening of  65 7-CAFé stores in 4Q-2024. Our ongoing initiatives include continuing the establishment of 7-CAFés  beyond Klang Valley, expanding into high-potential areas, and strengthening our partnership with our  Japanese counterpart to broaden fresh food offerings, while maximizing commissary production yields  through the adoption of best operational practices and discipline.  

Additionally, we are committed to expanding our private label portfolio as we aim to serve the growing  numbers of the value-driven consumers who prioritize product quality over brand recognition. In order  to align with our customer-centric approach, we will continue our efforts in consumer research and  insights, leveraging advanced analytics, social listening, and brand health surveys to continuously  improve our services and product offerings.  

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