Philippine Seven Corp., the local master franchise holder for 7-Eleven convenience stores, reported a 7.8 percent decline in net income for the first nine months of 2025 to ₱2.38 billion from ₱2.58 billion in the same period a year earlier.

In a disclosure to the Philippine Stock Exchange, the firm said the decrease was “primarily driven by a 2.1 percent contraction in same-store sales year-to-date,” which marked a reversal from the 5.8 percent growth recorded in the comparable 2024 period.

Stores in Metro Manila incurred the sharpest decline at 3.9 percent, while Mindanao was the only region to report positive growth, up 1.5 percent.

Despite the drop in profitability, system-wide sales—which include retail sales and service income from all corporate and franchise-operated stores—increased 4.5 percent to ₱71.91 billion.

Operating revenue, encompassing merchandise sales, franchise revenue, and corporate store service income, grew 6.5 percent to ₱69.14 billion. Revenue was supported by an 8.6 percent increase in the total store count, reaching 4,366, which resulted in an 8.7 percent rise in store operating days.

However, the average customer count per day for mature stores was 3.5 percent lower than the previous year, reflecting softer consumer traffic.

The merchandise gross margin improved to 27.9 percent from 26.6 percent, mainly due to stronger contributions from the non-alcoholic beverages, snack foods, and tobacco categories, which collectively accounted for about 40 percent of total sales. This improvement helped offset the period’s decline in service income.

Operating income edged up 1.1 percent to ₱3.84 billion, though the operating margin slightly declined to 5.56 percent from 5.86 percent a year earlier. The modest operating income growth, supported by higher gross margins, was partially tempered by increased operating expenses.

The company’s net income for the third quarter of 2025 declined more sharply, falling 26.2 percent to ₱600.4 million from ₱813.9 million in the same quarter last year.

The decrease was largely attributed to a 3.9 percent drop in same-store sales, which the firm blamed on “prolonged rainy and unfavorable weather conditions.” These conditions led to suspensions of work and classes, significantly curtailing store traffic. Sales activity is expected to normalize with improving weather and the onset of peak shopping months in the fourth quarter.

The third-quarter results also occurred as the Philippine economy expanded by a slower 4.0 percent, down from 5.5 percent in the previous quarter. The deceleration was primarily due to weaker public spending and a series of natural calamities that disrupted consumption. Meanwhile, inflation eased to below 2.0 percent, mainly on account of lower rice prices.