Politics

7-Eleven operator turns profitable

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DUY NGUYEN-UNSPLASH

7-ELEVEN operator Philippine Seven Corp. posted P425.38 million in attributable net income in the third quarter, turning around from its P181.05-million net loss a year ago.

The turnaround comes after revenues rose 46.7% to P16.06 billion for the July-September period, its quarterly financial report shows. Revenues from contracts with customers were the largest contributor with P15.75 billion, 44.8% higher than a year ago.

Philippine Seven’s other income surged by nearly 10 times to P281.78 million from P30.18 million in 2021. Revenues from fees collected by 7-Eleven stores for withdrawals from their automated teller machines (ATMs) are lodged under other income.

Meanwhile, the company’s expenses reached P15.49 billion in the third quarter, up by 38.4% from P11.19 billion in the previous year.

For the nine-month period, the company’s attributable net income stood at P1.32 billion, reversing the P583.95-million net loss incurred a year ago.

Philippine Seven’s year-to-date topline rose by 38.7% to P44.69 billion from P32.22 billion in the same period last year.

Revenues from contracts with customers were the biggest contributor with P44.19 billion, which increased by 38.7% from P32.22 billion in 2021.

Other income was also higher by more than five times at P430.37 million from P76.92 million in the previous year.

Year-to-date expenses amounted to P42.94 billion, up by 30.2% from P32.98 billion in its financial showing last year.

By the end of the third quarter, the nationwide store network of 7-Eleven reached 3,282, broken down as 52% corporate-owned and 48% franchise-operated.

“The sales of our stores near offices are about 10% below 2019, while those near residences already exceeded pre-pandemic level,” the company said.

So far in 2022, the company opened a total of 236 new stores and counted 27 closures, which the company said was better than the 104 new store openings and 63 closures last year.

In its report, the company said that it has a total of 1,965 ATMs across Metro Manila and the rest of Luzon.

“We expect to end this year with 2,500 ATMs in our system and shall include our stores located in Davao City in Mindanao,” it said. — Justine Irish D. Tabile