MANILA, Philippines, July 18, 2013 – Philippine Seven Corporation (PSC), licensee of the leading global convenience store chain, 7-Eleven, today announced in its annual stockholders’ meeting that the company generated P13.4 billion sales in 2012, a 25% growth over the previous year. Jose Victor Paterno, PSC President and Chief Executive Officer, said the company’s net income in 2012 rose 30.4% to P464.6 million, which is P108.3 million higher than 2011. These gains brought earnings per share to P1.17 against 2011’s P0.89.
The continuing yearly increases in corporate net income were accompanied last year by a substantial rise in trading interest and the price of company shares in the stock market. According to Philippine Stock Exchange reports, market price of PSC shares continues at high levels. By end of 2012, PSC share prices had risen to record price earnings (P/E) ratios of about 80. Trading of company shares in 2012 exceeded 95 million shares, almost a quarter of shares outstanding, with a traded value totaling P6.25 billion.
Arisaig Partners, a large European fund manager, invested in over 10% of the company’s shares, observed that PSC’s innovation- driven culture equips the company “to better navigate the unique island landscape nature of the Philippines”.
“2012 may well be remembered as a turning point for the Philippine economy, and we were happy to find ourselves in good position to benefit after having expanded throughout the uncertainty of 2011. The best company news of last year was the successful opening of 25 stores in Cebu, our first store venture outside Luzon,” Paterno said.
PSC’s current expansion to Visayas is made feasible by adapting systems its management team developed for logistics, distribution and marketing in Luzon. According to Paterno, “Adapting lessons learned in developing and implementing our Luzon system enables the company to profitably carry out its expansion in island-fragmented Visayas.”
7-Eleven’s hold in Luzon was strengthened by expanding into Bicol in the South and La Union in the North. Last July 2012, PSC opened its first 2 stores in Cebu. The region, now with 29 stores, is slated to have a total of 60 stores by the end of this year.
PSC continues to expand its presence in the country by opening stores in Bacolod. The first four 7-Eleven stores were inaugurated on 7-Eleven Day, July 11, 2013. The company aims to open 20 stores in Bacolod by the end of 2013 and open a total of 60 stores in the next 2 years. The company is also targeting expansion into Iloilo and the rest of Negros Occidental.
PSC was operating 829 stores by the end of 2012, a net increase of 140 new stores. Franchisees operated 67% of all stores, compared with 64% at end 2011.
The company continues to sustain its leadership by opening stores in strategic locations and offering a wide assortment of products that fit the market.
By the end of 2013, 7-Eleven will have 1,000 stores in the Philippines.
“As PSC continues with its aggressive expansion plans, the company will continue to widen its store presence to eventually include Mindanao, making 7-Eleven truly national,” said Paterno.