Philippine Seven Corporation’s second-quarter net income surged 24.6 percent on improvements in same-store sales and increased store numbers, driving the first-half earnings of the local operator and franchise holder of 7-Eleven convenience stores 9.4 percent higher year-on-year, the company said Friday.
Philippine Seven’s net income for the first semester rose to P323.9 million from P296.1 million in the same period last year, while profits for the second quarter alone grew by 24.6 percent to P224 million from P179.8 million in the same quarter in 2013.
Midyear operating income was up 9.8 percent at P468.8 million from 2013’s P426.8 million, while second-quarter operating income grew 24.3 percent to P322.9 million from P259.8 million.
In-store sales increased 21.9 percent to P9.778 billion in the first half from P8.543 billion.
The company has also allotted P2 billion for capital expenditures (capex) this year to open 300 new stores and renovate 100 existing stores. The P2 billion capex tops the P1.5 billion capex allotted in 2013.
The “management believes the company can sustain its momentum moving forward to meet store expansion and profit goals,” Philippine Seven said.
The company said it is expanding its market leadership as competition in the convenience stores segment grows tougher.
The 7-Eleven operator expanded its stores by 25.5 percent to a total of 1,121 stores in the first semester from the 893 stores recorded in midyear 2013.