7-Eleven Posts a Solid 8.5% Same Store Sales Growth in Q4 2021, with Full Year 2021 Revenues Up by 3.4%.
May 31, 2023
July 29, 2022
The company credits its growth and resilience to its core product offering and growing services business, positioning itself for a stronger rebound in 2022.
Philippine Seven Corporation (PSC) closed 2021 with total revenues of Php 45.1 billion, recording a 3.4% increase despite the profound impact of the pandemic. The easing of mobility restrictions in late 2021 also helped increase Same Store Sales Growth (SSSG) to 8.5% by the fourth quarter. Systemwide sales, which aggregates sales of all stores, rose 1.8% to Php 47.2 billion last year.
PSC announced last year’s figures during the 2022 Annual Stockholders Meeting on July 28, 2022.
The exclusive licensor of 7-Eleven in the Philippines credits this growth to its various key initiatives: pivoting store expansion to residential areas, its growing in-store payments services and the introduction of cash recycler ATMs.
“Despite the numerous economic challenges of the COVID-19 pandemic, we are pleased to close 2021 on a positive note. We believe the company’s results validate our commitment to meet constantly changing customer needs – via innovative products and services, and thus affirming our correct direction in this post-pandemic world,” said Jose T. Pardo, Chairman of the Board and Independent Director of Philippine Seven Corporation.
PSC reported that its operating cash flow surged by 62% and reduced outstanding debt by 22%. This development heralds optimism for 2022, especially after opening 164 new stores in 2021 despite the ongoing pandemic. PSC ended the year 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 who now spend more time at home than at offices and CBDs,” said Jose Victor Paterno, President and CEO, Philippine Seven Corporation. “We had net openings of only four (4) stores in Metro Manila in 2021, vs 73 in the rest of Luzon, and continue to lay our bets in this fashion until we see more proof of resurgence in the cities,” he added.
Besides expanding to residential areas, Paterno said that the installation of cash recycler ATMs in over 1,200 stores, also contributed to the increase in customer traffic. The ATMs provide several advantages as the store operators deposit their sales for the day in the ATM and the machine “recycles” the cash to fund the withdrawals of customers of the partner banks. Going forward, PSC plans to add at least 1,500 more cash recycler ATMs in 2022 across parts of Visayas and Mindanao.
Meanwhile, the continued acceleration of new Fintech services like e-wallet cash-ins, which resulted in growth in service income, was also a major contributor and a source of future growth. “We believe that partnering with new digital players will be an opportunity that, because of our assets, we are uniquely positioned for. The thinking is that we were fortunate to have built and accumulated our digital assets when it was cheaper to do so, and we are now in a good position to monetise those assets by partnering with digital players who need access to them, ” Paterno added.
PSC reported a total of Php 448.2 million in operating income—its adjusted revenue after all expenses of operation and depreciation have been subtracted. Meanwhile, the company recorded a slightly higher net loss of Php 461.0 million in 2021 owing to the one-time impact of the new CREATE law on deferred tax assets.
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 said.