Convenience store operator 7-Eleven said its first quarter net income dipped as costs rose, but sales increased on the back of higher fuel prices and demand for food, drinks and cigarettes.

Turnover for the period climbed10.7% to $2.8bn, while net income slipped to $4.8m from $5m last year, as operating, selling, general and administrative costs rose 10.2%, 7-Eleven said.

The retailer noted that gross profit on fuel was up 5.8%.