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MANILA, Philippines – Philippine Seven Corporation (PSE:SEVN) reported its third quarter and nine-month financial results ended September 30, 2016 with a net income growth of 24.8 percent.
As of September, the store count of the company increased by 24.4% from 1,479 to 1,840 against the prior year of the same period. During the third quarter, there is an addition of 106 new stores against its six shutdowns. Per major islands, Luzon has 1,537 7-Eleven stores, Visayas has 218, and Mindanao has 85.
The net income of the company during the nine-month period increased from P515.5 million to P643.4 million against last year record, which is a 24.8 percent increase.
A year ago, the retail sales were recorded P18.5 billion. The nine-month measure showed an increase by 24.4 percent at P23 billion. The higher yields are contributed by new store launches and increased same store sales at 2.5 percent.
Merchandise sales-driven operating margin remained at 4.6 percent during the three-quarter period of 2016.
The company eyes expansion of its existing and new markets to lead the competition. In order to do this, it has to invest in first-mover lead and heighten its scale in retaining its leading position among convenient stores nationwide. Due to its expenditures in capacity developments for the past three years, the company has become competent and well-controlled. The management is expected to achieve new heights as the market expands.
For its store expansion strategy support, the company will increase its capital expenditures allocation to P3.5 billion. The budget is inclusive of store renovation, acquirement of equipment, and opening of new stores.
Philippine Seven Corporation is the operator of the largest convenience stores in the Philippines. It got its license to operate 7-Eleven stores in the country in December 1982 as granted by Seven Eleven Inc. (formerly Southland Corporation) of Dallas, Texas. On February 4, 1998, the corporation was listed in Philippine Stock Exchange (PSE).
As of 2:24pm of November 10, 2016, SEVN is trading at 155 per share, no change from yesterday’s closing price.