7-Eleven posts 3.4% revenue growth
May 31, 2023
July 29, 2022
PHILIPPINE Seven Corp. (PSC), 7-Eleven’s Philippine licensor, ended 2021 with a 3.4-percent increase in revenue despite the disruption caused by the pandemic.
At its Annual Stockholders Meeting on Thursday, PSC reported that it notched a gross revenue of P45.4 billion in 2021, higher than its 2020 figure of P44.1 billion.
It also reported a total of P448.2 million in operating income, and a slightly higher net loss of P461.0 million in 2021, due to a one-time charge under the Corporate Recovery and Tax Incentives for Enterprises (Create) Act on deferred tax assets.
Despite the loss, the easing of mobility restrictions in late 2021 helped increase the company’s same-store sales growth to 8.5 percent by the fourth quarter. System-wide sales rose 1.8 percent to P47.2 billion last year.
The company credits this growth to its various key initiatives such as pivoting store expansion to residential areas, its growing in-store payments service and the introduction of cash recycler ATMs in-store.
“Despite the numerous economic challenges of the Covid-19 pandemic, we are pleased to close 2021 on a positive note despite our losses. We believe the company’s results validate our commitment to meet constantly changing customer needs,” Jose Pardo, PSC chairman of the board and independent director, said.
PSC reported that its operating cash flow increased by 62 percent and a reduction in outstanding debt by 22 percent. These developments make for an optimistic outlook for 2022, with the opening of 164 new stores in 2021 despite the ongoing pandemic. PSC ended the year 2021 with 3,073 stores nationwide.
“In 2020, we saw how work-from-home arrangements impacted our stores in various central business districts. We pivoted in mid-2020 and 2021 and pursued new store openings in residential areas to cater to the needs of hybrid workers,” Jose Victor Paterno, PSC president and chief executive officer, said. “We had net openings of only four stores in Metro Manila in 2021, versus 73 in the rest of Luzon, and we will continue to lay our bets in this fashion until we see more proof of resurgence in the cities,” he added.
“No matter the circumstances, PSC is committed to continue to be at the leading-edge of convenience services. With all these developments, I believe that the company was able to refresh its convenience store concept, while remaining true to the time-tested brand goodwill attached to our 7-Eleven name. We shall be capitalizing on our learnings during the pandemic as we solidify our position in this industry,” Pardo reiterated.
PSC’s shares ended lower on Thursday with its share down P0.50 from its previous close to P63.00 per share.