MANILA, Philippines — Philippine Seven Corp. (PSC), the operator of the 7-Eleven convenience store chain, expects another banner year, supported by its resilient business model and expansion outside Metro Manila, according to its top official.
“ First quarter is a record first quarter and we believe 2023 will be a record year,” said Jose Victor Paterno, PSC president and CEO when asked if the company expects to sustain the growth momentum and hit another record performance this year.
PSC’s first quarter net income surged by 165 percent to P527.6 million.
The company has allotted P3.7 billion for its capital expenditures this year to support its continued expansion.
Last year, PSC hit a record net income of P2.06 billion, the highest in its corporate history. This achievement marks a significant turnaround from the net losses incurred in the previous two years – P461 million in 2021 and P419.7 million in 2020.
System-wide sales, which represent the retail sales and service income of all corporate and franchise-operated 7-Eleven stores, rose by 39.7 percent to almost P66 billion last year. Revenue from contracts with customers increased by 38.8 percent to P62.7 billion, while revenue from merchandise sales went up 41.5 percent to P56.7 billion.
“We are very pleased with our strong financial post-pandemic performance in 2022, we went from the bottom ranks of 7-Eleven Asian licensees in 2020 and 2021 to among the very top in 2022 in terms of per store sales vs 2019,” Paterno said.
He said 2022 results reflect the resilience of PSC’s business model, the implementation of correct strategies, and the strong support of customers.
“We are confident that we will continue to grow and deliver value to our stakeholders in the years ahead,” he said.
The 2022 net income of P2.06 billion also surpassed the 2019 pre-pandemic level of P1.4 billion.
As of the end of last year, PSC operates 3,393 7-Eleven convenience stores nationwide.
The company expanded its presence in residential clusters outside Metro Manila to cater to the growing trend of remote work arrangements, Paterno said.
PSC aims to add up to 400 new stores in 2023. At the current store count, about 52 percent are corporate-owned, while 48 percent are franchise operated. Total new stores opened for 2022 reached 353 against 33 closures. This was higher than the 164 new stores opened and 69 closures in 2021.
It had a total of 2,322 ATMs activated in Metro Manila and the rest of Luzon including 148 ATMs in Cebu and 82 ATMs in Davao.
This translates into 68 percent coverage and is expected to expand further as ATMs will be deployed in the underserved segment of the market.
PSC chairman of the board and independent director Jose Pardo said the company was able to refresh the convenience store concept post-pandemic, while remaining true to the time tested goodwill attached to the 7-Eleven brand.
This allowed PSC to move one step closer in fulfilling its mission of making daily lives easier by providing modern convenience.