7-Eleven owner Seven & i sees Q3 profits drop

(Sharecast News) - 7-Eleven owner Seven & i Holdings reported another steep drop in quarterly profits on Thursday as the Japanese company continues to fend off a takeover over by Canadian retailer Alimentation Couche-Tard. Seven & i said that operating income in the three months to 30 November totalled just 128.4bn yen ($810m), down 24% on the year before and well short of the consensus forecast of JPY138bn.

That followed a 20% year-on-year drop in profits in the second quarter and a 28% decline in the first.

Third-quarter revenues were slightly higher at JPY4.67trn, up from JPY4.65trn the year before, with mild growth in its larger international division offsetting falls in the domestic convenience network, superstore operations and its financial services activity.

The company received a $39bn takeover offer from Alimentation Couche-Tard back in October, claiming it "grossly" undervalued the business, though shares have still risen nearly 50% since then.