7-ELEVEN operator Philippine Seven Corp. has allotted P3.5 billion to P4 billion for this year’s capital spending budget to support its store expansion.
“We opened about 150 stores so far this year out of [the] 400 new stores target,” Philippine Seven Head of Finance and Investor Relations Lawrence M. De Leon said during the company’s annual stockholders meeting on Thursday.
The company allotted up to P2 billion for its 300-store target for 2022.
Last year, the company opened 320 new stores and ended with a total of 3,393 stores nationwide, a 10.4% increase from 2021.
Philippine Seven is expecting a split of the 400-store count target between company-owned and franchise-operated stores, which would be mainly concentrated outside Metro Manila, Mr. De Leon said.
“We find ourselves in a situation where geographic shifts in demand have fortuitously opened up opportunities to expand in areas beyond the current reach of competition,” Philippine Seven President and Chief Executive Officer Jose Victor P. Paterno said in a statement.
“Our market development plan will be implemented as we recognize the growing customer preference towards innovation, proximity, and convenience,” Mr. Paterno added.
He said the company is expecting another record year in 2023 coming off the “record” earnings results during the first quarter.
“We believe 2023 will be a very much record year. What we are hoping is… 2023 becomes an inflection point where the curve steepens again,” he added.
During the first quarter of the year, the company more than doubled its net income to P527.62 million from P199.13 million, driven by better same-store sales growth, which went up by 23.3%.
Its top line in the first quarter rose by 35.8% to P17.52 billion from P12.9 billion in the same period last year.
In 2022, the company turned profitable, reporting P2.06 billion in net income, a reversal of the P461 million net loss in 2021.
Its revenues grew by 39.7% to P63.45 billion from the P45.43 billion reported the previous year.
Philippine Seven shares closed unchanged at P88 apiece on Thursday. — Adrian H. Halili
