7/11 posts 32.5% profit growth for 1H 2016
Numbers are looking good for 7/11!
The biggest convenience store operator in the Philippines, Philippine Seven Corp. posted a net profit for the first half of the year with a 32.5% year-on-year growth, at P472.3 million as election spending increased retail sales together with the outlet’s store network expansion, Inquirer reported.
For this year, PSC aims to increase its capital expenditure budget to P3.5 billion from last year’s P3-billion allocation, to further support its store network expansion strategy in the middle of tighter competition.
PSC, the local licensee of 7-Eleven convenience stores ended half of the year with 1,740 stores, some 24% increase versus previous year. 1,474 stores are in Luzon, while 203 stores are in Visayas and 63 store are located in Mindanao.
“The company is set to attain another milestone this year in terms of store count and profitability,” PSC said in the report.
“While competition is likely to be more intense, PSC is the most capable to strengthen its position in the convenience store sector. It aims to capitalize on its first-mover advantage and intends to benefit from the capacity-building expenditures over the last three years. It believes that the market will continue to grow as it enables the organization in achieving new heights,” it added.
PSC operates the biggest and leading convenience store network in the Philippines, which was franchised in 1982, and was publicly listed in 1998, Inquirer said.