Philippine Seven Corporation Grows Net Income By 16.6% and accelerates store expansion
May 31, 2023
June 16, 2017
MANILA, Philippines (June 16, 2017) — 7-Eleven local licensee, Philippine Seven Corporation (PSC), reported an increase of 16.6 percent in their net income in 2016. The company attributes its outstanding performance to their continued expansion and higher retail sales.
PSC ended 2016 with a total of 1,995 stores, opening a record number of 410 new stores. PSC also grew in the Visayas region from 178 to 255 stores, and from 33 to 107 stores in Mindanao in 2016.
According to Jose Victor Paterno, PSC President and CEO, “We expect above average growth to continue in both regions as we continue to fill in our footprint in the islands.”
As of May 2017, 7-Eleven currently has 2,071 stores, and celebrated the milestone opening of its 2,000th store last March 2017.
An abundant year
The company experienced favorable growth with full year net profits pegged at P 1.2 billion, a marked improvement from P 1.0 billion in 2015. Aside from the store openings, PSC established new distribution centers, warehouses, and regional headquarters to help with the capacity of their ongoing expansion.
Stock prices were also positive for PSC, increasing to P135.00 per share in 2016, translating into a price earnings ratio of 53 times. PSC’s earnings per share is at P 2.56, a 16.4 percent increase compared to the preceding year’s P 2.20.
Trading volume also almost doubled to twenty million shares in 2016. PSC increased shareholder value by returning P0.55 per share in cash dividends and this totaled to P 252.1 million.
The fastest growing convenience store
PSC’s improved earnings were largely driven by the higher retail sales generated by corporate and franchise-operated stores, from P25.8B in 2015 to P31.8B in 2016. The surge in commission income and better product mixes contributed to the increase.
The company’s impressive turnout even influenced Nielsen Retail Index’s recent report revealing that convenience stores are the fastest growing in the retail sector.
Furthermore, PSC also experienced sales increase in their merchandise after an amped up advertising and promotions program, and an increased frequency of customers’ visit implemented through 7-Eleven’s innovative customer loyalty program.
The impressive numbers truly made 7-Eleven a market leader in the convenience retail sector. “We capitalized on our first mover advantage and economies of scale in widening our lead against competitors,” Pardo said during their Annual Stockholders’ Meeting held last June 16 at the Crowne Plaza Galleria Manila, Ortigas Avenue, Quezon City.
Moving forward, 7-Eleven will continue to be a part of everyone’s neighborhood as PSC aims to further expand their product offerings, remodel existing stores, and implement their market development plan over the next five years to enable the achievement of new milestones.