Philippine Seven incurs net loss

Listed Philippine Seven Corp. (PSC) booked a loss of P419.7 million last year, reflecting the impact of the implemented quarantine restrictions to its operations.

In a filing to the exchange on Friday, the local licensee of 7-Eleven convenience stores said the coronavirus pandemic affected its sales, especially those of 7-Eleven stores in the office and school clusters.

Full-year same stores sales dropped by 18.4 percent, while system-wide sales slipped by 17.7 percent to P46.37 billion last year from P56.33 billion in 2019.

Meanwhile, PSC saw recovery in its financial results during the last quarter of the year.

PSC’s net income stood at P165.6 million in the fourth quarter, reversing the net loss it recorded in the second and third quarters as sales slowly improved.

The gradual reopening of the economy enabled PSC’s same store sales to grow by 14.3 percent quarter-on-quarter during the period.

PSC said it ended 2020 with a store count of 2,978, of which 2,261 are in Luzon, 432 are in Visayas and 285 are in Mindanao.

The franchised stores accounted for 55 percent of the total, while the remaining 45 percent are corporate-owned.

The company noted fewer than 7 percent of its store base were temporarily closed by the end of the year.

PSC announced early last month the roll out of its cash recycling ATMs, which accept cash deposits via high-speed bill readers and then dispense the same bills for withdrawals.

The firm said the ATMs are “expected to compliment the growing service business of 7-Eleven and also contribute in increasing the level of financial inclusion in the Philippines.”

Shares of PSC gained 90 centavos, or 0.88 percent on Friday to close at P103 apiece.

Article and Photo originally posted by Manila Times last April 17, 2021 and written by Faye Almazan.