Philippine Seven Corporation (PSE:SEVN) – Unaudited results for the second quarter and six months ended June 30, 2022
Strong same-store sales growth lifted earnings above pre-pandemic level
- PSC registered a significant 39.2 percent growth in same store sales during the second quarter, driven by the improvement in mobility. This allowed the Company to build on the solid sales growth momentum that started in the third quarter of 2021.
- As a result, the Company registered an operating income of P1.1 billion as net income also improved to P691.3 million, reversing the net loss incurred of P103.2 million last year. As compared with the second quarter of 2019, net income this year is better by 42.4 percent from prepandemic level of P485.3 million.
- Net income during the first six months of 2022 reached P890.4 million, a reversal from the net loss incurred in 2021 in the amount of P402.9 million. Compared with the same period in 2019, net income this year is higher by P405.1 million or by 83.5 percent.
- The growth in same-store sales by the end of the first half stood at a solid +27.6 percent, attributable to the reopening, increase in food service sales and election related spending. PSC concluded its 7-Election Speak CUP promotional campaign, not only by correctly predicting the winner, but also by selling more than 5.0 million cups during the campaign period. This campaign further engaged customers during the election period and drove foot traffic to our stores
The following are the financial highlights based on the Company’s unaudited financial reports:
Philippine Seven Corporation (PSC), the local licensee of 7-Eleven Convenience Stores, increased its net income during the six-month period ended June to P890.4 million, exceeding pre-pandemic level. The better financial performance can be attributed to the solid growth in sales and service income, driven by improved mobility, increasing food-service sales and election related spending.
Retail sales of all stores (or system-wide sales) at the end of the first semester, aggregated to P30.2 billion, up by 35.9 percent from P22.2 billion last year. The increase was due to the 27.6 percent growth in same store sales and higher number of operating stores, which rose by 7.9 percent to end the period with 3,241 7-Eleven stores all over the Philippines. New stores added reached 173 against only 5 closures during the first six-months of the year.
Philippine Seven Corporation (PSC) ended June with a nation-wide store count of 3,241 stores. There are 2,459 7-Eleven stores in Luzon (1,057 of which are in Metro Manila), 464 in Visayas and 318 in Mindanao. The corporate-owned stores accounted for 52 percent of the total, while the remaining 48 percent were franchise-operated.
Jose Victor Paterno, President and CEO, stated, “service income more than doubled compared with prepandemic level, mainly due to growth in e-wallets cash-in and bills payment transactions. Payments and services are an important source of traffic and revenue in other major convenience chains. This is an integral part of our CLiQQ digital ecosystem strategy, which also includes loyalty, e-wallet, and ecommerce.”
According to Lawrence De Leon, PSC head of finance, “we are grateful to Pito AxM Platform, Inc., a wholly owned subsidiary of Seven Bank Ltd. of Japan for rolling out cash-recycler ATMs in our stores starting in February of last year. The ATMs allow our store operators to deposit their sales for the public to withdraw. We ended June, with a total of 1,814 ATM activations. This includes more than 140 ATMs in Cebu. We expect to end the year with close to 2,800 ATMs activated.”