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TOKYO, Japan -- Seven & I Holdings Co. Ltd., parent company to 7-Eleven, is expected to post a group operating profit of 142 billion yen ($1.2 billion USD) for the first half of fiscal 2007 ended Aug. 31, up 12 percent from the year prior, according to reports in Nihon Keizai, a Japanese business daily.
Seven & I Holdings was created on Sept. 1, 2005 as the holding company of the supermarket operator Ito-Yokado, Denny's Japan and the convenience chain Seven-Eleven Japan. Prior to this, Ito-Yokado was the parent firm of the other business units. Since the reorganization, the holding company has bought U.S. based 7-Eleven, a department store company and a supermarket.
According to Nihon Keizai reports, the profit growth was due to the addition of Millennium Retailing and other businesses, increased profit margins in the supermarket business and a steady growth in convenience store operations. Profit for the company's convenience store division grew 2 percent from the year prior, the newspaper reported.
Same store sales at Seven-Eleven Japan dropped 2 percent during the first half of the fiscal year, due to intensifying competition and bad weather. However, this was balanced by positive numbers at new stores and at 7-Eleven stores in the U.S.
Revenue for the company approached 2.56 trillion yen, an increase of 35 percent from the year prior, Nihon Keizai reported. Profit is expected to rise by 9 percent from last year, to 140 billion yen. Net profit for the firm is expected to increase more than 80 percent to 69 billion yen, according to reports from Nihon Keizai.
An official statement regarding the holding company's earnings will be announced on Oct. 12, reported Reuters. The 142 billion yen estimate falls short of two brokerages estimates of 147.3 billion yen, an increase of 15.6 percent over last year, Reuters reported.
As of Oct. 2, $1 equaled 117.70 yen, according to Forbes reports.
The U.S. 7-Eleven chain, based in Dallas, 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. During 2005, 7-Eleven stores worldwide generated total sales of approximately $43 billion.