Philippine Seven says Q1 net income rises 13 pct

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(Source: ABS-CBNnews.com | May 12, 2015)

Philippine Seven Corporation (PSC), the local licensee of 7-Eleven convenience stores, said its net income jumped 13 percent in the first quarter.

In a statement, PSC said its net income rose 12.9 percent to P112.9 million in the January to March period, from P100 million during the same period a year ago.

The company attributed the higher earnings to the “increase in sales of all corporate and franchise-operated stores.”

PSC reported retail sales increased by 24 percent to P5.5 billion in the three-month period from P4.4 billion a year ago.

In the first quarter, 59 new 7-Eleven stores were opened, bringing its total number of stores to 1,341.

Jose Victor Paterno, PSC president and CEO, said the company has taken steps to protect its leadership in the market, amid competition from other convenience store chains.

“This involves not only an increased pace of expansion in areas contested by competition, but strategic entry into new territories. The latter may be unprofitable for the first few years due to the high fixed costs of logistics, but we believe will later be rewarded with strong first mover advantages,” he said.

This year, PSC is entering Mindanao via stores in Davao and Cagayan de Oro.

PSC said it is hiking its capital expenditures budget by more than 50 percent to P3 billion to support its store expansion strategy.