7-Eleven boosts net income with aggressive store expansion

7-Eleven boosts net income with aggressive store expansion
Philippine Seven Corporation says it managed to penetrate Mindanao during Q2 amid increased competition

MANILA, Philippines 7-Eleven posted a net income of P356.6 million ($7.83 million) for the first half of 2015 on the back of aggressive store expansion and improved average sales.

Philippine Seven Corporation (PSC) 7-Eleven’s local franchise holder reported Monday, July 27 that the latest net income was up 10% from P323.9 million ($7.11 million) in the same period last year.    

In a financial report filed with the Philippine Stock Exchange, PSC said system wide sales rose 24.3% for the first half of the year to P12.2 billion ($267.85 million) from P9.77 billion ($214.50 million) recorded in the same period a year ago.

Revenue from merchandise sales or those retail sales of corporate stores and merchandise sold to franchised stores, grew by 26.8% at P10.13 billion ($222.39 million).

For the second quarter alone PSC said it generated net income P243.6 million ($5.35 million), up 8.8% from P223.9 million ($4.92 million) registered in the same period last year.

Second quarter system wide sales went by 24.4% during the April to June period. 

First mover advantage

PSC said the rate of earnings growth was slower in the second quarter of the year compared to 12.9% recorded in the first quarter of the year due to the company’s capacity building expenditures. 

PSC opened 258 stores during the first 6 months of 2015 to end the semester with a total of 1,405 7-Eleven convenience stores all over the Philippines. (READ: 7-Eleven opens 59 stores in first quarter) 

PSC said it managed to penetrate the Mindanao during the second quarter with the opening of 4 stores in Davao and Cagayan de Oro. 

The company earlier reported that it will spend P3 billion ($65.88 million) in capital expenditures this year to finance the roll out 350 stores.

PSC targets to have 2,000 stores in the next 3 to 4 years. Rappler.com

$1 = P45.54

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