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Seven & I reports a 23% decline in its net profit in the first three quarters combined


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  • Seven & I reports a 23% decline in its net profit in the first three quarters combined.
  • The diversified retail group’s nine-month revenue comes in at £30 billion.
  • Seven & I forecasts a narrower 34% decline in net profit to £1.02 billion this year.

In a financial update on Tuesday, Seven & I Holdings Co. (TYO: 3382) said that its net profit in the first three quarters combined came in 23% lower on a year over year basis. The company attributed the decline to its domestic convenience-stores that took a hit from the ongoing COVID-19 crisis.

Seven & I slid about 2.5% on market open on Tuesday. Including the price action, the stock is now trading at £27.57 per share. In comparison, it had tumbled to a low of £21.52 per share in the first week of August.

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Seven & I’s nine-month revenue comes in at £30 billion

For the nine months that concluded on 30th November, Seven & I posted £920 million of net profit versus a higher £1.20 billion in the same period last year. Net profit in the fiscal third quarter, as per the Japanese firm, came in at £410 million. In comparison, the FactSet Consensus for Seven & I’s net profit in Q3 stood at a lower £330 million.

The Chiyoda City-based company generated £30 billion of revenue in the nine months that represents a 14% annualised growth. Revenue in the third quarter stood at £10 billion. In separate news from Japan, several of the country’s automakers said earlier this week that production figures were likely to take a hit in January due to the shortage of semiconductor chips.

Seven & I also said on Tuesday that its nine-month operating profit saw a year over year increase of 4.3% from its international convenience-stores. Domestic convenience-stores, on the other hand, registered an 8.9% decline in the nine months. Here’s what you should know about the profit and loss statements.

Seven & I’s guidance for the full financial year

For the financial year to conclude on 28th February, the diversified retail group now forecasts its revenue to slide by a broader 14% to £40 billion. But it expects net profit to see a narrower 34% decline to £1.02 billion this year. In an announcement last month, Seven & I’s U.S. subsidiary, 7-Eleven said that it transitioned to 100% renewable power for its operations.

Seven & I performed slightly downbeat in the stock market last year with an annual decline of close to 9%. At the time of writing, the second-largest retailer of Japan is valued at £24 billion and has a price to earnings ratio of 19.17.