7-Eleven operator profit exceeds P1 billion
The Philippine licensee of 7-Eleven stores breached the P1 billion profit mark last year as strong consumer spending drove a 25 percent jump in sales.
In a financial report submitted to the Philippine Stock Exchange, the Paterno-led Philippine Seven Corp. said net earnings grew 15.4 percent to P1.01 billion as retail sales of all stores expanded 25.3 percent to P25.8 billion.
Revenue from merchandise sales reached P22.4 billion, up 30.9 percent year on year. Operatng income likewise went up 17.5 percent to P1.49 billion.
“We are virtually the only competitor with the critical mass to build out proper supply chains in areas logistically unreachable from GMA,” said Jose Victor Paterno, president and CEO of PhilSeven.
Store count at the end of 2015 increased to 1,602 compared with only 1,282 in 2014. New stores added totaled to 337 against 17 closures during the year.
PhilSeven said rate of earnings growth was slower due largely to its capacity building expenditures. It has been expanding its logistics infrastructure to support its aggressie expansion in Visayas and Mindanao.
“This will impact profitability in the medium-term, in the form of underutilized warehouses but is expected to benefit the company by achieving dominant position in new markets,” PhilSeven said.