Mandaluyong—(PHStocks)—Philippine Seven Corporation (PSC, PSE: SEVN), the local licensee of 7-Eleven Convenience Stores, registered a net income of PhP472.3 million during the first half of 2016. This represents a 32.5% increase compared with the same period in 2015.
The improved financial performance was boosted by election related spending in the first quarter and continued up to the second quarter. Retail sales of all stores totaled to PhP15.5 billion, up by 27.2% compared with the level set last year.
The increase in sales can be attributed to the higher number of operating stores, which rose by 23.8% or by 335 stores. In addition, same store sales went up by mid-single digit during the period.
PSC opened 148 new stores and closed 10 to end June with 1,740 stores. There are 1,474 7-Eleven stores in Luzon, 203 in Visayas and 63 in Mindanao. Franchisees control 57% of total while 43% are corporate stores.
The company is set to attain another milestone this year in terms of store count and profitability. While competition is likely to be more intense, PSC is the most capable to strengthen its position in the convenience store sector. It aims to capitalize on its first-mover advantage and intends to benefit from the capacity-building expenditures over the last three years. It believes that the market will continue to grow as it enables the organization in achieving new heights.
For this year, the company will be increasing its capital expenditures budget to PhP3.5 billion to support its store expansion strategy. Bulk of the said amount is allocated to new store opening, store renovation and equipment acquisition.