Philippines: 7-Eleven to expand as company reports 10.1% higher profit

Philippine Seven Corp. (PSC), the local listed operator of 7-Eleven convenience stores, reported a 10.1% increase in net income for the first half of 2015 to P356.5 million ($7.8 million).

PSC enjoyed a 25.3% increase in its number of stores, with their network now accounting for 1,405 franchised stores in the Philippines. Four new stores were opened during the second quarter in different cities, reported Philstar.

The company´s growth will be boosted by PSC president and CEO Jose Victor Paterno´s plans to invest up to $65.9 million (P3 billion) for the construction of additional 7-Eleven stores.

He told company shareholders in the company´s annual report they would be increasing the capital expenditure budget by 50% to support the expansion. Most of the investment will be used for the opening of new stores, renovating existing ones, and warehouse expansion.

“We are virtually the only competitor with the critical mass to build out proper supply chains in areas logistically unreachable from GMA. Such supply chains come at a medium term cost in terms of underutilized warehouses, and for 2015 we will be operating 10 warehouses throughout Luzon, Mindanao, and three islands in the Visayas versus four in mid 2014,” said Paterno in the annual report.