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THE local operator of the 7-11 convenience store chain said its
profits last year surged on the back of higher sales and increased
number of franchised stores.
During a briefing, Victor Paterno, Philippine
Seven Corp. president and chief executive, said the firm’s audited
net income in 2007 increased by almost 2.5 times to P54 million as
system-wide retail sales climbed by 7 percent to P4.9 billion.
Paterno said the company also got a boost from
the increased number of 7-11 stores franchised nationwide by mostly
overseas Filipinos and their families. He said Filipinos are more
interested in franchising or “owning” a 7-11 store rather than
buying stocks as investment. This helped increase the firm’s other
income derived from franchise fees. Paterno said only a percentage
of the franchised stores’ gross margins from last year’s P5.5
billion sales were booked as part of the company’s income.
About 60 percent of its 309 convenience stores
are franchised while the rest are company-owned and operated. By
year-end, the company aims to have 400 stores, 70 percent of which
would be franchised. This would entail at least P650 million, half
of which would come from internally generated funds and the rest
would come from borrowings. A part of the capital expenditure budget
would go to the refurbishment of existing stores.
In 2006, the company opened 50 stores and
upgraded existing ones for about P300 million.
Vicente Paterno, Philippine Seven chairman, said
the company is not in a hurry to raise capital from the stock market
since it can still tap at least P625 million of credit line extended
by Bank of the Philippine Islands, Banco de Oro Unibank, Citibank,
Chinatrust Commercial Bank, and Metropolitan Bank and Trust Co.
-- Likha C. Cuevas-Miel
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