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TOKYO, Japan -- Seven & I Holdings Co. announced its half year results yesterday, which confirm earlier reports that it would see a 12 percent increase in profit for the term, as reported by CSNews Online last week. After adding its subsidiaries to the results, including U.S.-based 7-Eleven stores, its full year profit forecast increased 2 percent, Reuters reported.
The company's operating profit forecast for the year, ending in February, also increased to 305 billion yen from 300 billion yen, which brings it close to 17 analysts' estimates of 305.9 billion yen as polled by Reuters estimates.
Its convenience store operations generated 86 percent of the operating profit in 2005 to 2006, but it currently faces a saturated market and increased competition from other retailers, including discount stores, such as Don Quijote, Reuters reported. Operating profit for its convenience stores topped 142.11 billion yen ($1.2 billion USD) for the first half. For its Ito-Yokado supermarket, half-year profit totaled 127.2 billion yen. Ito-Yokado is the former parent company for convenience stores Seven-Eleven Japan and its restaurant chain Denny's Japan.
The Seven & I Holding Co. was set up in September 2005 and since then, the company bought Dallas-based 7-Eleven Inc. and completed the acquisition of Millennium Retailing, operator of 12 Sogo and 16 Seibu department stores in Japan. Last month, it also bought out the Japanese grocer York-Benimaru. The U.S. 7-Eleven chain operates, franchises or licenses more than 7,100 stores in North America. Globally, 7-Eleven operates, franchises or licenses more than 30,000 stores in 18 countries and U.S. territories.