MANILA -The listed Philippine operator of 7-Eleven convenience stores expects another banner year in terms of earnings as it deploys nearly P4 billion to help boost its store footprint outside Metro Manila
Philippine Seven Corp., led by the Paterno family, plans to open 400 new branches this year, which will increase its total store count to over 3,790 outlets nationwide.
This will fuel further profit growth after it recorded a net income of about P2.1 billion in 2022, a historic high for the company.
“The first quarter was a record first quarter and we believe 2023 will be very much a record year,” Jose Victor Paterno, Philippine Seven president and CEO, said during a media briefing after the company’s annual shareholders’ meeting on Thursday.
He said their financial results the past year “reflect the resilience of our business model, the implementation of correct strategies, and the strong support of our customers”.
“We went from the bottom ranks of 7-Eleven Asian licensees in 2020 and 2021 to among the very top in 2022 in terms of per store sales vs 2019,” Paterno said.
The company also implemented a dramatic shift to focus on store expansion outside Metro Manila and nearby provinces.
This strategy will continue in 2023 with most of its new outlets expected to open in provincial areas, said Philippine Seven head of finance Lawrence de Leon.
“We find ourselves in a situation where geographic shifts in demand have fortuitously opened up opportunities to expand in areas beyond the current reach of competition,” Paterno said.
Philippine Seven also ended the past year with a total of 2,322 automated teller machines in Metro Manila and the rest of Luzon, including 148 ATMs in Cebu and 82 ATMs in Davao.
“The company was able to refresh the convenience store concept post-pandemic, while remaining true to the time tested goodwill attached to the 7-Eleven brand. This allowed [Philippine Seven] to move one step closer in fulfilling its mission of making daily lives easier by providing modern convenience,” company chair Jose T. Pardo said in a statement on Thursday.