The Philippine licensee of the 7-Eleven chain of convenience stores grew its profit by a fourth in the second quarter of the year on higher same-store sales.
In a disclosure to the Philippine Stock Exchange, Philippine Seven Corp (PSC) said its net income rose to P224 million in the April to June period from P179.80 million in the same period last year.
This pushed earnings to P323.90 million in the first half of the year, up by nearly a tenth from P296.10 million in the same period in 2013.
"Management believes the company can sustain momentum moving forward to meet store expansion and profit goals. It has taken steps to protect and expand its leadership in light of increased competition, recognizing that rewards for market share are especially strong in the convenience store sector," PSC said.
Retail sales from company-owned and franchised stores jumped 21.9 percent to P5.35 billion in the three-month period from P4.39 billion in 2013. In the first semester, sales jumped 14.5 percent to P9.78 billion from P8.54 billion last year.
At end-June, the number of 7-Eleven stores climbed by a quarter to 1,121, of which 66 percent are franchise stores.
PSC is more than doubling its capital expenditures to P2 billion this year to open 300 new stores and renovate the close to 100 existing stores. The company plans to double its network to 2,000 in the next 3 to 4 years.
PSC operates the largest convenience store network in the country. It acquired from Southland Corp, now Seven Eleven Inc, of Dallas, Texas the license to operate 7-Eleven stores in the Philippines in December 1982.
