Latest development of Family Mart
#QL long-term and stable
In 2016, QL introduced Family Mart, and by the end of 2023, there were 385 branches, with an expected milestone of over 400 branches this year. In the initial few years, the contribution of FM to the company's revenue was less than 10%, so the financial report did not disclose the data of convenience stores. It wasn't until FY22Q4 that QL disclosed the operating income and pre-tax profit (PBT) of Family Mart.
Since its introduction, it's believed that the revenue for FY2017 has steadily grown, and the company's revenue will definitely improve as the number of branches increases. However, it is speculated that the initial two years may have been a loss-making period. The full-year revenue for FY20 before the outbreak of the pandemic was RM442.31 million, and the company already had RM17.97 million in PBT. The company's revenue almost doubled in three years, and it is expected to have steady growth in revenue in the coming years, with margins fluctuating with raw material prices.
By the end of the first 9 months of FY24, the PBT of Family Mart has exceeded the full-year PBT of FY23, and it is expected that the full-year revenue of FY24 will surpass RM1,000 million. Although there was nearly some involvement in the Boycott controversy before, the impact was minimal.
It is estimated that the current number of branches is close to 400, and QL's target is to reach 600 branches by FY27. If the management continues to maintain its past execution record, it is believed that this target can be achieved.
It took QL 8 years to bring the number of branches close to 400. Assuming they open 1000 branches in the next 10 years, this business is expected to achieve a revenue of RM2 billion - RM3 billion. Will it be split and listed like Sunway Medical? We will continue to monitor.
Family Mart's early contribution was very small, but now it contributes as much as 9% of QL's PBT. It is expected to gradually increase to 12% - 15% in the future and become the company's Cash Cow business. The company has paid off nearly RM600 million in bank loans in the past 3 years, and future dividends may increase slowly.
In 2016, QL introduced Family Mart, and by the end of 2023, there were 385 branches, with an expected milestone of over 400 branches this year. In the initial few years, the contribution of FM to the company's revenue was less than 10%, so the financial report did not disclose the data of convenience stores. It wasn't until FY22Q4 that QL disclosed the operating income and pre-tax profit (PBT) of Family Mart.
Since its introduction, it's believed that the revenue for FY2017 has steadily grown, and the company's revenue will definitely improve as the number of branches increases. However, it is speculated that the initial two years may have been a loss-making period. The full-year revenue for FY20 before the outbreak of the pandemic was RM442.31 million, and the company already had RM17.97 million in PBT. The company's revenue almost doubled in three years, and it is expected to have steady growth in revenue in the coming years, with margins fluctuating with raw material prices.
By the end of the first 9 months of FY24, the PBT of Family Mart has exceeded the full-year PBT of FY23, and it is expected that the full-year revenue of FY24 will surpass RM1,000 million. Although there was nearly some involvement in the Boycott controversy before, the impact was minimal.
It is estimated that the current number of branches is close to 400, and QL's target is to reach 600 branches by FY27. If the management continues to maintain its past execution record, it is believed that this target can be achieved.
It took QL 8 years to bring the number of branches close to 400. Assuming they open 1000 branches in the next 10 years, this business is expected to achieve a revenue of RM2 billion - RM3 billion. Will it be split and listed like Sunway Medical? We will continue to monitor.
Family Mart's early contribution was very small, but now it contributes as much as 9% of QL's PBT. It is expected to gradually increase to 12% - 15% in the future and become the company's Cash Cow business. The company has paid off nearly RM600 million in bank loans in the past 3 years, and future dividends may increase slowly.
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