7-Eleven licensee earns 25% more

MANILA, Philippines - Philippine Seven Corp. (PSC), the local licensee of 7-Eleven convenience stores, grew its net income by 24.8 percent to P643.4 million in the nine months ending September this year.

This was on the back of system wide sales growth of 24.4 percent to P23 billion.

“The increase in sales can be attributed to the higher number of operating stores, which rose by 24.4 percent or by 361 stores. In addition, same store sales went up by 2.5 percent during the nine-month period,” PSC said in a statement yesterday.

In the third quarter alone, net income rose 7.5 percent to P171 million as system wide sales grew to P7.545 billion from P6.335 billion a year ago.

As of the end of September, the company had a nationwide store count of 1,840, up by 361 or 24.4 percent from 1,479.

Of the 1,840 stores, 1,537 are in Luzon, 218 in Visayas and 85 in Mindanao. New stores added in the third quarter totaled 106 against six closures.

Franchisees control 56 percent of the total while 44 percent are corporate stores.

PSC aims to widen its lead over competition through expansion in existing and new markets.

It shall capitalize on its first-mover advantage and increasing scale in maintaining its dominant position in the convenience store sector.

For this year, the company has set aside P3.5 billion for capital expenditures to support its store expansion strategy. Bulk of the said amount is allocated for new store openings, store renovation and equipment acquisition.

PSC operates the largest convenience store network in the country. It acquired from Southland Corporation (now Seven Eleven Inc.) of Dallas, Texas the license to operate 7-Eleven stores in the Philippines in December 1982.