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Convenience store chains report lower earnings in Q1

Convenience store chains report lower earnings in Q1

Taipei, May 14 (CNA) Two major convenience store chains in Taiwan -- President Chain Store Corp. (???) and Taiwan FamilyMart Co. (??) -- suffered falls in their earnings for the first quarter, according to their financial statements filed with the Taiwan Stock Exchange. President Chain Store, which operates the largest convenience store chain in Taiwan -- 7-Eleven -- posted a roughly 29 percent year-on-year decline in its net profit for the January-March period, since the company did not record one-time gains from disposal of non-core business investments as it had over the same period of last year. In the first quarter, President Chain Store recorded NT$2.11 billion (US$68.8 million) in net profit, down from NT$2.97 billion seen a year earlier. Its first-quarter earnings per share (EPS) stood at NT$2.03, down from NT$2.86 registered a year earlier. However, President Chain Store's consolidated sales for the first quarter rose 0.29 percent from a year earlier to NT$48.25 billion, and its operating profit gained 7.66 percent year-on-year to NT$2.26 billion. President Chain Store said that if the one-time gains impact is excluded from the first-quarter earnings comparison, its core business continued to grow in the quarter, adding that its investments in Starbucks in Taiwan and Shanghai, and other retail projects in the Philippines, scored gains in the three-month period. For its part, FamilyMart said that since it booked losses from its investments in the animation business, net profit for the first quarter fell about 16 percent from a year earlier to NT$174 million. Its EPS for the first quarter stood at NT$0.78, down from NT$0.92 recorded a year earlier. In addition to the losses resulting from its investments in the animation business, a change in accounting methods in its chain store business investments in the China market also affected its bottom line in the first quarter, FamilyMart said. The chain store operator said that it currently owns 1,328 FamilyMart outlets in Chinese cities and these stores enjoyed about 5 percent year-on-year growth in daily sales on average in the first quarter, indicating that the investments have been sound. As of 12:06 p.m. shares of President Chain had lost 0.89 percent to NT$222.00 on the Taiwan Stock Exchange, while shares of FamilyMart had stayed unchanged at NT$236.50. (By Esme Jiang and Frances Huang)


Updated : 2021-09-26 18:00 GMT+08:00