Phl Seven Corp posts 28.4% net income growth

MANILA, Philippines - Philippine Seven Corp., the country’s biggest convenience store operator, reported a 28.4 percent growth in its nine-month net income to P224.4 million, mainly driven by higher merchandise sales and franchise revenues.

The figure translated to earnings per share of P0.65 as against P0.50.

Total revenues of the local licensee of the 7-Eleven chain of convenience stores grew 32 percent to P9.46 billion, while systemwide sales expanded 26 percent to P9.7 billion due to the increase in store base and improved average sales registered by mature stores.

New franchise operators boosted franchise revenues which increased by 28 percent to P487.4 million. To date, franchise stores occupy 41 percent of total stores compared to 39 percent for the same period last year.

Marketing income improved by 27.7 percent to end the period at about P346.7 million owing to the continuing support by the suppliers in various marketing activities.

EBITDA (earnings before income transaction depreciation and amortization) went up 29.4 percent to P699 million.

As of Sept. 30, 2012, 7-Eleven had a store count of 781 as it was able to open 95 new stores and closed three stores during the first nine months.

PhilSeven plans to further widen its geographic footprint as it builds its presence in Metro Cebu, a major city in the Visayas. It plans to hit 1,000 stores by 2013.

Along with its 24/7 convenience, Phil-Seven also offers services including bills payment, phone/call cards and sim packs, and 7-Connect that allows customers to pay for selected online purchases with cash through any 7-Eleven store.

“We intend to grow services as new opportunities surface due to technological progress,” PhilSeven said.

During the third quarter, PhilSeven announced a partnership with Philippine Airlines that allows passengers to pay for tickets booked online at 7-Eleven stores.