Japanese retailer Seven & I Holdings has reported mixed results for the first nine months of its financial year.
Cost cuts offset falling sales to improve Seven & I’s operating profit for the nine months to 30 November but charges linked to last year’s earthquake and tsunami hit its bottom line.
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Seven & I’s operating income increased 23% to JPY216.22bn (US$2.81bn) despite a 7.2% fall in revenues to JPY3.55trn.
This year, 7-Eleven, the retailer’s US subsidiary, has also changed the way it accounts for revenues from its franchise operations. Seven & I said the change had decreased group revenues by JPY394.9m but had no effect on profits.
However, the retailer’s net income fell 7.3% to JPY83.66bn after recording JPY24.54bn in losses from the disaster last year. Seven & I also made a JPY22.5bn loss on an adjustment for the changes to the accounting standards for asset retirement obligations.
Nevertheless, the retailer kept its forecast for annual profits at JPY127bn, an increase of 13.4% on the year. Revenues are expected to fall 6.6% to JPY4.78trn.
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By GlobalData
