Convenience store chain operator Philippine Seven Corp. said it plans to spend P3.7 billion in 2019 primarily to roll out new stores and re-model existing outlets.
PSC, the local franchise holder for 7-Eleven convenience store in the Philippines, said in an investors’ presentation that it would open 350 new stores this year to bring the total to 2,900 outlets. The average cost to build one store ranges from P5 million to P6 million.
PSC said it would also refurbish 100 existing stores aged six to seven years. The group also has 12 distribution centers capable of serving 3,100 stores.
PSC said net income declined 41 percent in the first quarter to P112.4 million from P190.5 million a year ago, with the implementation of the new accounting rule that changes the recognition of leased properties.
PSC said it adopted the International Financial Reporting Standards on Leases (IFRS 16) which took effect early this year.
“The impact of IFRS 16 to PSC is significant since most of its stores and distribution centers are under a long-term lease arrangement,” PSC said.