By James A. Loyola
Philippine Seven Corp. (PhilSeven), the local licensee of 7-Eleven Convenience Stores, reported a 19.4 percent jump in net income to P533.2 million in the first six months of the year from P446.4 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm attributed the strong profit growth to higher sales as the firm continues to expand its chain.
Retail sales of all stores (or system-wide sales) totaled to P22.2 billion, up by 22.7 percent from the P18.1 billion set in the same period in 2017.
The increase in sales was driven by the improvement in same store sales and higher number of operating stores, which rose by 14.3 percent or by 299 stores to end the period with 2,386 stores all over the Philippines.
PhilSeven said the new tax reform for acceleration and inclusion law favorably affected sales by increasing customer count and average basket size.
“The lower personal income tax strengthened the purchasing power of the middle class and the excise tax on sugar-sweetened beverages increased selling price but no significant decline in volume occurred,” it noted.
PSC ended the second quarter with a nation-wide store count of 2,386 stores.
There are 1,866 7-Eleven stores in Luzon (906 of which are in Metro Manila), 331 in Visayas and 189 in Mindanao. Franchisees control 54 percent of all stores while the remaining 46 percent are corporate-owned.
The company said it remains on track when it comes to pursuing its store expansion program. It continues to invest in opening new stores in existing and new markets even if competition had slowed down.