Philippine Seven Corp. (PSC), the exclusive licensor of 7-Eleven in the Philippines, will open two new distribution centers (DCs) outside Luzon as part of its PHP5.5 billion capital expenditure for 2025 to support its goal of establishing 500 new stores in the country this year.
Lawrence de Leon, PSC head of finance, divulged the DC/warehouse expansion at the PSC’s 2024 Annual Stockholders Meeting, which was marked by a robust financial performance and a pivotal leadership movement with Jose Victor Paterno formally assuming the role of Chairman of the Board, succeeding Jose T. Pardo who now takes on the role of Chair Emeritus and member of the Advisory Board. PSC’s longtime Chief of Operations, Richard Lee steps into the role of President.
According to De Leon, PSC will open a new DC or warehouse in Zamboanga in the third quarter this year and in Ormoc, Leyte in the fourth quarter.
“This is to support our push for the Vis-Min,” he said adding that the investment for the two new facilities is already part of the PHP5.5 billion capex for this year. Of the 500 new stores to be opened this year, De Leon said 250 will be located in the Vis-Min, 150 in Luzon and 100 in Metro Manila.
The concentration in Vis-Min is largely to leverage on the lack of competition in the country’s two other largest islands. “We wanted to secure the best location while rental is still low,” he added.
While there are already local convenience stores in Vis-Min, De Leon said they don’t have a good inventory of products because they don’t own DCs or warehouses while 7-Eleven has plenty of DCs ensuring their continuous supply.
De Leon also explained that company-owned stores are growing more than their franchise stores because of location issue. As of end 2024, PSC owns 51 percent of their 4,000 stores and only 49 percent are franchise-owned. Ideally though, he said, franchise-stores should be higher than corporate stores.
In 2024, PSC delivered strong financial results with net income climbing from 9.4 percent to PHP3.81 billion. This was driven by a 13.8 percent surge in system-wide sales, reaching PHP93.5 billion in the same period. Likewise, the company’s revenue from contracts with customers also saw a 13.6 percent improvement to PHP88.7 billion.
Same-store sales growth (SSSG) remained positive for the full year at 3.2 percent, propped up by a healthy 3.4 percent increase in customer traffic in mature stores. This resilience was notable despite a slight dip in the fourth quarter, which marked the end of a 13-quarter streak of positive growth.
“Our 40th year was about honoring our legacy while building a foundation for the future,” said Jose Victor P. Paterno, outgoing PSC President and CEO. “Our performance is a direct result of our strategic focus on innovation, customer convenience, and responsible expansion.”
“Reaching 4,000 stores in our 40th year is a testament to the trust we’ve earned from our customers and the dedication of our entire team. We are proud to be an integral part of daily Filipino life.”
Investing in Innovation and Financial Inclusion
PSC has aggressively expanded its financial services through a strategic collaboration with Pito AXM Platform, Inc. By the end of 2024, 3,493 stores, or 84 percent of the network, were equipped with cash-recycling ATMs. These machines not only enhance operational efficiency but also serve as a vital tool for financial inclusion in underserved communities.
Capital expenditures rose by 12.9 percent in 2024, reflecting PSC’s commitment to investing in new store openings, technology upgrades, and logistics. The company also continued to enhance its CLiQQ mobile app and innovate its food service offerings to meet evolving consumer preferences for value and convenience.
Delivering Exceptional Shareholder Value
Furthermore, PSC maintained a healthy and stable balance sheet, ending 2024 with total assets of PHP43.3 billion. The company achieved an all-time high Return on Equity (ROE) of 35.2 percent, up from 32.1 percent in 2023, showcasing outstanding efficiency in generating profits from shareholder investments.
In a significant return to shareholders, PSC distributed PHP7.26 billion in cash dividends and issued a 100 percent stock dividend in 2024. This move, which capitalized excess retained earnings, rewarded investor confidence and underscored the company’s sound financial health.
“As we move forward, our focus remains on enriching the lives of our customers through innovation and convenience,” Paterno added. “With a proven ability to adapt and a clear vision for growth, Philippine Seven Corporation is poised for continued success.”
This transition is a testament to the company’s strong succession planning and strategic continuity. Paterno and the Board expressed full confidence in Lee’s leadership, citing his deep understanding of the business, operational excellence, and longstanding contributions to PSC’s growth.
Lee has played a key role in building operational alignment with PSC’s regional partners, particularly 7-Eleven Taiwan, whose technical and strategic collaboration has been instrumental to PSC’s success in the Philippine market.
“Richard has been an integral part of our leadership team for years. His steady hand, commitment to execution, and strong ties with key stakeholders in Taiwan will help carry PSC into its next chapter,” said Paterno.
