Japan's Seven & I Holdings has raised its full-year profit forecast, on expectations that a weaker yen will boost the value of overseas convenience store sales.
The operator of 7-Eleven convenience stores lifted its operating income estimate 15% to 445 billion yen (€3.21 billion) in the year ending February 2023, it said in first-quarter results.
The operator of 7-11 and Speedway convenience stores in the United States said it now expects the yen to trade at 127 to the dollar this year, against 114 previously, resulting in a 24.5 billion (€180 million) yen boost to operating income.
The group reported a 57% increase in revenue across its operations in the three months to the end of May, it said.
Company Restructuring
In April, the group announced plans to revamp its board of directors as it seeks to accelerate overseas growth.
The company has recently been under pressure from activist fund ValueAct Capital to make structural reforms and sell off assets.
Seven & I said in a statement it would name two female and three non-Japanese nominees to the new roles of independent outside directors, making external members the majority in its board composition.
The revamp is intended to add diversity and bring in new skills as the company pursues growth outside Japan, it said.
It said it would continue reforms of its business portfolio, and that it had hired a financial adviser to conduct a strategic review of its Sogo & Seibu department store unit.
News by Reuters, additional reporting by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.
