7-Eleven first-half income up 32.5% at P472.3 million

CEBU, Philippines - The operator of 7-Eleven stores grew its net income by 32.5 percent in the first half of the year to P472.3 million as it will also be increasing its capital expenditure this year to P3.5 billion to support its store count expansion.

"The improved financial performance was boosted by election related spending in the first quarter and continued up to the second quarter," Philippine Seven Corp. said in a disclosure to the Philippine Stock Exchange yesterday.

Retail sales of all its store totaled P15.5 billion, up 27 percent from last year.

"The increase in sales can be attributed to the higher number of operating stores, which rose by 23.8 percent or by 335 stores," PSC said.

PSC opened 148 new sores and closed 10 to end June 2016 with 1,740 stores: 1,474 are in Luzon, 203 in Visayas and 63 in Mindanao.

The company owns 43 percent of total stores while franchisees control 57 percent.

"The company is set to attain another milestone this year in terms of store count and profitability," it noted.

However, the company also underscored that competition in the convenience store sector is likely to be more intense.

PSC said that bulk of the P3.5-billion capex this year is allocated to new store opening, store renovation and equipment acquisition.

It said it will continue to capitalize on its capacity-building expenditure over the last three years.

Shares of PSC were at P142 apiece at noon trading yesterday. (FREEMAN)