7-Eleven Philippine operator sees reversal to profitability in 2021

Philippine Seven Corp. (PSC), the local licensee and operator of 7-Eleven convenience stores in the country, is expecting a financial turnaround this year as the economy gradually reopens.

At a virtual press conference on the sidelines of the company’s stockholders meeting on Thursday, PSC president and CEO Victor Paterno said the company is “better prepared for today's situation and tomorrow's.”

“We hope to move to profitability… It's been improving as we move through the pandemic,” Paterno said.

In 2020, PSC swung to a net loss amid a challenging economic situation due to the COVID-19 pandemic. 

The company posted a net loss of P419.7 million, a reversal from P1.44 billion net income posted in 2019.

Despite the net loss incurred last year, Paterno said PSC has a robust cash flow of P1.2 billion, to support its market and product development plans in preparation for the Philippine economy's gradual reopening.

Likewise, the company has earmarked P1 billion capital expenditures this year, PSC head of Finance Lawrence de Leon said.

De Leon said the capex will support the opening of at least 200 new stores this year.

Earlier this week, PSC opened its 3000th store in Meycauayan, Bulacan.

The franchised-stores accounted for 55% of the total, while the remaining 45% are corporate-owned. —NB, GMA News