PhilSeven suffers P420-M loss due to pandemic

Published April 19, 2021, 5:00 AM

by James A. Loyola

 Philippine Seven Corporation (PSC), the local licensee of 7-Eleven Convenience Stores in the country, incurred a net loss of P419.7 million in 2020, a 129 percent reversal from the P1.44 billion it earned in 2019.

  In a disclosure to the Philippine Stock Exchange, the firm said “The pandemic adversely affected sales as lockdown restrictions were imposed under different classifications of community quarantine.”

The sales of 7-Eleven stores in the office and school clusters were the most affected.

 “We are not out of the woods, by any stretch. Our financial performance has been abysmal, and when our profit and growth numbers will return depend on not just the pandemic and how the Philippines navigates it’s end, but on how quickly our online and offline pivots take root, if at all,” said PSC President Jose Victor Paterno.

 While profits fell steeply, gross revenues dropped by a much lower 17  percent to P44.03 billion last year from P53.19 billion in 2019. Gross expenses reached P44.6 billion versus P51.1 billion in 2019.

 PSC ended 2020 with a nationwide store count of 2,978 stores. Less than seven percent of its store base were temporarily closed by the end of the year.

The majority of 7-Eleven convenience stores remained open during the lockdown to provide essential products and services to the communities where it is present. 

There are 2,261 7-Eleven stores in Luzon (1,010 of which are in Metro Manila), 432 in Visayas and 285 in Mindanao. The franchised-stores accounted for 55 percent of the total, while the remaining 45 percent are corporate-owned.