Philippine Seven Corporation (PSE:SEVN), the local licensee of 7-Eleven Convenience Stores, posted solid net income growth in 2016 at 16.6 percent to P1.18 billion (US$23.5 million).
In a disclosure to the Philippine Stock Exchange, the company said retail sales of all stores went up by 23.2 percent to P31.8 billion from P25.8 billion a year ago. Higher sales were driven by the opening of new stores and 1.2 percent growth in same store sales for the whole year.
Store count by the end of 2016 reached 1,995, up by 393 stores or 24.5 percent higher from 1,602 at the end of 2015. New stores added during the year totaled 410 against 17 closures.
“We continued to dominate the convenience retail sector by opening new stores all throughout the country. We capitalized on our first-mover advantage and economies of scale in widening our lead against competitors. The capacity building expenditures we made in the form of establishing new distribution centers and regional headquarters are starting to produce favorable results,” the company statement reads.
For this year, the Company will be setting its capital expenditures budget to at least P3.5 billion to support its store expansion strategy. Bulk of the said amount is allocated to new store opening, store renovation and equipment acquisition. – BusinessNewsAsia.com