Philippine Seven Corp., the local franchise holder of convenience store chain 7-Eleven, said net income rose 15 percent in 2015 to P1.01 billion from P873.3 million in 2014, on aggressive store expansion.
PSC said in a disclosure to the stock exchange retail sales of all stores, including company-owned and franchise outlets, jumped 25 percent to P25.8 billion from P20.6 billion a year ago.
The company said in the fourth quarter alone, net income increased 21.6 percent to P492.5 million as sales jumped 35.5 percent to P6.67 billion.
The company added 337 stores in 2015 and closed down 17 outlets to end the year with total store count of 1,602 stores, up from 1,282 stores in 2014.
The company said earnings growth in 2015 was slower than the previous year’s level due to higher capital spending aimed at supporting expansion in the Visayas and Mindanao.
PSC said while this would impact the company’s profitability in the medium term, the move would allow it to achieve dominant position in new markets.
The convenience store operator earmarked P3.5 billion in capital expenditures in 2016, up from P3 billion in 2015, primarily to build more stores.
PSC president and chief executive Jose Victor Paterno said the company’s dominant position in the convenience store industry and the rapid expansion of business process outsourcing industry across the country would continue to drive the company’s growth.
PSC entered the Mindanao market last year with the opening of stores in Davao City and Cagayan de Oro City.
PSC said as of end-December 2015, it had 1,391 7-Eleven stores in Luzon, 178 in the Visayas and 33 in Mindanao.
It also expanded its existing distribution centers and opened new warehouses in 2015.
PSC had nine warehouse facilities in 2015, up from only four in 2014.
PSC operates the largest convenience store network in the country. It targets to have 2,000 stores in the next three to four years.