THE operator of the 7-Eleven chain of convenience stores reported that its net income grew by double-digits last year on the back of higher sales and new store openings.
In a regulatory filing, Philippine Seven Corp. (PSC) said its profit climbed 78 percent to P276.9 million, slower than the 85-percent growth to P155.8 million in 2009.
System-wide revenue, a measure of sales of all corporate and franchise operated stores, rose 29 percent to P9.1 billion from P7.1 billion previously, mainly driven by the higher number of operating stores and improvement in same-store sales.
“Sales went up as a result of better weather conditions coupled by favorable effect of a recovering economy and higher spending during the election season,” PSC said.
Revenue from merchandise sales grew by 26 percent to P7.6 billion, while cost of goods sold went up by 28 percent to P5.6 billion.
At end- 2010, 7-Eleven had 551 stores, up 24 percent from the previous year’s 446. Out of the total, 211 were franchise stores, 130 operated under a service agreement, and the remaining 210 were company owned.
New operators boosted franchise store count by 27 percent and grew franchise revenues by 46 percent to P442.8 million.
7-Eleven maintains it leadership in the convenience store industry with a 47 percent market share based on store count. It is followed by Ministop with 28 percent, Mercury Self-Serve with 24 percent, and San Miguel Food Shop with 1 percent.
PSC plans to invest P2.5 billion to put up 500 new stores in the next three years, bringing its store count to 1,000.
Its shares were last traded last week at P17.90 each.