7-Eleven posted increased net income for first quarter of 2009

Effective cost management, plus a large base of store network is what Philippine Seven Corp. says it attributes its positive performance for the first three months of the month year.

For the period January to March, the local operator of the 7-Eleven chain of convenience stores posted an increased net income which rose to P13.27 million, more than the P5.58 million net income that it earned during the same period last year.

As of March 2009, PSC has a total of 371 stores in Metro and Luzon, a 17 percent increase compared to last year’s level of 318, making it the largest convenience store network in the country. The company noted that the total number of franchised stores has reached 203, accounting for 55 percent of total operating stores, as of the first quarter of the year.

Revenues from its franchises increased to P72.09 million for the first quarter of this year, from P52.97 million in the same period last year. This is mainly because of the increased number of franchise-operated stores.

The company said it is working to optimize its earnings by improving merchandise assortment and ensuring stock availability. And while it is aiming to open more stores in strategic locations, it will not hesitate to close down non-performing outlets. For the first quarter, four of these outlets were closed, while seven new ones were opened. “These efforts are geared towards the goal of the organization of enhancing shareholder value,” PSC said.

The company is still going to continue promoting franchising its business as a good investment opportunity for those who want to get into the retail industry. It aims to increase its number of franchise-owned stores this year to more than half of its total network.

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July 13, 2009 · Roy · 7 Comments
Tags: 7-Eleven, Business, convenience stores, first quarter performance, franchise, net income, Philippines, PSC · Posted in: Philippines

7 Responses

Luke - July 13, 2009

Wow this is different! That’s good for the company.

[Reply]
Roy Reply:
July 13th, 2009 at 9:49 am
Hi Luke! You’ve found me! hehe…

Thanks!

[Reply]
Luke - July 13, 2009

Yup, I did. I should be watching you closely just like a padawan watches his master jedi. I’ll also make another blog. Maybe after reading all the readings I should be reading. But then again, I’ll be watching you and ceblogger and don ser and jehz and fedz and the rest.

[Reply]
Dee - July 13, 2009

Good blog! Keep it up.

[Reply]
Roy - July 13, 2009

@Luke
that’s a lot of reading! lol

@Dee
Hi Dee!

Nice of you to drop by. Thanks!

[Reply]
Badet - July 13, 2009

Found this through Jan’s twitter Kuya Roy.

Having a 7-eleven franchise is like having a Jollibee franchise, walang lugi…

[Reply]
Roy Reply:
July 13th, 2009 at 11:49 pm
Hi Badet!

Thanks napasyal ka din dito

oo nga e, sana nga lang mura lang ang franchise nya no

[Reply]