Store expansion lifts 7-Eleven H1 profit to P1.84B

MANILA, Philippines — Philippine Seven Corp. (PSC), the local operator of 7-Eleven stores, grew first-half net profit by 3.8 percent as stronger sales and store expansion offset higher operating and interest expenses.

On Thursday, PSC said net profit reached P1.84 billion in the first six months, up from P1.78 billion a year earlier.

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System-wide sales rose 15.1 percent to P55.78 billion, while operating revenue increased 14.9 percent to P53.48 billion, driven by stronger same-store sales and network expansion.

Same-store sales grew 5.9 percent, reversing a 0.9-percent decline a year earlier. PSC attributed the improvement to a recovery in tobacco and non-alcoholic beverages, as well as larger average basket sizes following the rollout of card payment terminals.

The company ended June with 4,650 stores, up 9 percent year-on-year. New stores contributed more than 6 percent of total sales, with 55 percent of the network company-owned and 45 percent franchise-operated.

PSC also cited rising sales of ready-to-eat products and proprietary beverages as key margin drivers. Operating income rose 7.9 percent to P2.99 billion, although the operating margin narrowed to 5.59 percent from 5.95 percent.

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“Despite external cost pressures and emerging indirect competition in Luzon, the company is prioritizing long-term scale and market share,” the company said.

“By leveraging its established supply chain, PSC is aggressively securing prime locations in underserved provincial areas like Visayas and Mindanao to strengthen its first-mover advantage and raise barriers to entry,” the company added. /pai