Convenience store group Philippine Seven (PSC) had 16.6 per cent growth in net profit last year to reach P1.18 billion (US$23.5 million).

Its figures were boosted by store openings and “modest” growth in same-store sales, says the 7-Eleven licensee.
Its system-wide sales grew 23.2 per cent to P31.8 billion, attributed to store growth alongside a 1.2 per cent increase in same-store sales. The store count by year end reached 1995, up 393 outlets or 24.5 per cent from the previous year.

There were 1633 7-Eleven stores in Luzon, 808 of them in Metro Manila, with 255 in Visayas and 107 in Mindanao. Franchisees control 55 per cent of stores, with the balance owned by the company.

PSC says its spending on capacity building, such as establishing distribution centers and regional headquarters, is starting to produce results.

“We aim to further expand our product offering, remodel stores and implement our market-development plan over the next five years,” says the company.

PSC’s average net margin eased to 4.1 per cent last year from 4.5 per cent in 2015. For the fourth quarter alone last year, net margin stood at 7 per cent, down from 7.4 per cent for the same period in the previous year.

For the quarter alone, net profit increased by 8 per cent to P532.1 million while system-wide sales ballooned by 20 per cent to P8.75 billion.

This year PSC has budgeted capital expenditure of at least P3.5 billion to support its store expansion strategy.