7-Eleven posts 3.4% revenue growth

PHILIPPINE Seven Corp. (PSC), the Philippine licensor of 7-Eleven, ended 2021 with a 3.4% increase in revenue despite the disruption caused by the pandemic.

At its annual shareholders meeting on Thursday, PSC announced that it achieved gross revenue of 45.4 billion pesos in 2021, higher than its 2020 figure of 44.1 billion pesos.

It also reported a total of 448.2 million pesos in operating profit and a slightly higher net loss of 461.0 million pesos in 2021, due to a one-time charge under the Reorganization Act. companies and tax incentives for companies (Create) on tax assets.

Despite the loss, the easing of mobility restrictions at the end of 2021 helped lift the company’s same-store sales growth to 8.5% in the fourth quarter. System-wide sales rose 1.8% to P47.2 billion last year.

The company attributes this growth to its various key initiatives such as the expansion of its stores into residential areas, its growing in-store payment service and the introduction of in-store ATMs.

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“Despite the many economic challenges of the Covid-19 pandemic, we are pleased to end 2021 on a high note despite our losses. We believe the business results validate our commitment to meet the ever-changing needs of customers” , said Jose Pardo, chairman of the PSC board and independent director, said.

PSC reported that its operating cash flow increased by 62% and a reduction in outstanding debt of 22%. These developments point to an optimistic outlook for 2022, with 164 new stores opening in 2021 despite the ongoing pandemic. PSC ended 2021 with 3,073 stores nationwide.

“In 2020, we saw the impact of work-from-home agreements on our stores in various central business districts. We pivoted in mid-2020 and 2021 and continued to open new stores in residential areas to meet the needs of hybrid workers,” Jose Victor Paterno, president and CEO of the PSC, said. “We only had net openings of four stores in Metro Manila in 2021, compared to 73 in the rest of Luzon, and we will continue to bet that way until we see more evidence of resurgence. in cities,” he added.

“Regardless of the circumstances, PSC is committed to continuing to be at the forefront of local services. With all these developments, I believe the company has been able to refresh its convenience store concept, while remaining faithful to the proven brand goodwill attached to our 7-Eleven name. We will capitalize on our learnings during the pandemic as we solidify our position in this industry,” Pardo reiterated.

Shares of PSC ended lower on Thursday with its share down 0.50P from its previous close at P63.00 per share.