7-Eleven ends H1 up 19.4%

Image from The Shelby Report Philippine Seven Corporation (PSC), the local licensee of 7-Eleven convenience store chain in the country, saw its net income jump by 19.4 percent in the first half of the year, buoyed by rising sales and more branches for the period.

In a disclosure to the Philippine Stock Exchange (PSE), the PSC said it generated a net income of P533.2 million from January to June 2018, higher by P86.8 million than the P446.4 million posted in the same period last 2017.

System-wide sales increased 19.2 percent to P11.55 billion for the period, benefiting from a 6.3 percent rise in same-store sales.

Retail sales of all stores reached P22.2 billion for the first six months, 22.7 percent higher compared to the P18.07 billion posted on the same period last year. Similarly, second quarter sales improved by 19.2 percent, from P9.69 billion last year to P11.552 billion from April to June.

The rise in income was due to improvement in same store sales, as well as the higher number of operating stores, which saw a 14.3 percent increase from 2,087 to 2,386 stores.

A total of 114 new stores were added since January, while 14 closures were reported.

Same-store sales continued to increase posting a 6.3 percent growth in the second quarter bringing a year-to-date same-store sales growth to 9.2 percent.

PSC said in its report the Tax Reform for Acceleration and Inclusion (TRAIN) Law affected their sales on a positive note as the tax reform package increased their customer count and basket case.

“The lower personal income tax strengthened the purchasing power of the middle class and the excise tax on sugar-sweetened beverages increased selling price,” PSC said in its statement.