Seven & i Holdings, the owner of 7-Eleven and other retail stores, has released its first-half financial results. Here’s a breakdown of the key details:
Net Profit Decline
The company’s net profit for the six months ended August fell by 41% compared to the previous year, amounting to 80.23 billion yen ($537.8 million). In the second quarter, net profit was Y38.05 billion, down from Y42.18 billion in the first quarter. This missed the estimated net profit of Y50.91 billion as per analysts surveyed by FactSet.
Revenue Drop
First-half revenue also saw a decline, dropping by 1.8% compared to the previous year, totaling Y5.547 trillion.
Special Loss
Seven & i Holdings incurred a special loss of Y130.32 billion due to the sale of its Sogo & Seibu department-store business to Fortress Investment Group on Sept. 1. This significant loss had a negative impact on the company’s overall financial performance.
Future Outlook
The company maintains its projection that net profit will decrease by 18% to Y230.00 billion for the fiscal year ending in February 2024. It also forecasts a 3.2% decline in revenue, expecting it to reach Y11.432 trillion.
Operating Profit
While the first-half operating profit for its overseas convenience-store business experienced a 2.4% decline compared to the previous year, amounting to Y112.83 billion, operating profit improved for other lines of businesses. Seven & i Holdings predicts that operating profit for its overseas convenience-store business will increase by 7.0% to Y310.00 billion in this fiscal year.