Elections boost 7-Eleven Philippines profit
7-Eleven Philippines stores register first-quarter sales growth on the back of election-related buying.
Retail sales of all stores went up by 33.5 per cent to P7.3 billion (US$405 million) from P5.5 billion a year ago. This was driven by opening of new stores and increase in same store sales, which was largely attributed to election-related spending.
Philippine Seven saw its net income up 61.6 per cent year-over-year to P182.4 million during the first quarter.
The local licensee of 7-Eleven Convenience Stores said its improved financial performance was within expectation as the company’s profits are historically favorable during election season.
Philippine Seven opened 55 new stores and closed two to end the quarter with 1655 stores. The company now has 1421 7-Eleven stores in Luzon, 189 in Visayas and 45 in Mindanao.
It is set to attain another milestone this year in terms of total number of stores and profitability.
The company said, while competition is likely to be more intense, Philippine Seven is the most capable to strengthen its position in the convenience store sector. It aims to capitalise on its first-mover advantage and intends to benefit from the capacity-building expenditures over the last three years.
For 2016, the company plans to increase its capital expenditures budget to P3.5 billion to support its store expansion strategy.