PHILIPPINE Seven Corp., operator of 7-Eleven convenience stores in the country, said on Friday that its net income last year hit the P1-billion mark, driven by new store openings and strong sales during the period.
In a disclosure to the Philippine Stock Exchange, Philippine Seven said net income in 2015 grew 15.4 percent to P1.01 billion from P873.3 million the year before.
In the fourth quarter alone, the company said income climbed 21.6 percent to P492.5 million on strong sales.
Profit growth was attributed to brisk retail sales, which climbed by 25.3 percent to P25.8 billion, the company said.
The company has programmed P3.5 billion for capital expenditure this year to support its accelerated store expansion strategy, up from P3 billion last year. Bulk of the amount will go to new store openings, store renovation and equipment acquisition.
“The rest of the country is relatively uncontested in comparison. We are virtually the only competitor with the critical mass to build out proper supply chains in areas logistically unreachable from GMA [Greater Manila Area]. Such supply chains come at a medium-term cost in terms of underutilized warehouses,” said Jose Victor Paterno, Philippine Seven president and chief executive officer.
As of end-2015, the company had a total of 1,602 stores all over the country, up 25 percent from the preceding year.
Philippine Seven also entered the Mindanao market in 2015, opening stores in Davao City and Cagayan de Oro during the second quarter. At the end of 2015, there were 1,391 7-Eleven stores in Luzon, 178 in the Visayas and 33 in Mindanao.
“We expanded our existing distribution centers and opened new warehouses in 2015. We ended the year with nine warehouse facilities versus four in mid-2014,” Paterno added.