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Introduction & Market Context
Philippine Seven Corporation (PSE:SEVN), the exclusive operator of 7-Eleven convenience stores in the Philippines, presented its Q4 and Full Year 2024 results on April 14, 2025, highlighting strong annual performance despite quarterly challenges. The company reached a significant milestone of 4,130 stores nationwide, making the Philippines the 6th largest market in 7-Eleven’s global network of over 83,700 stores across 20 countries.
In the Philippine retail landscape, convenience stores have increased their market share to 4.56% (up from 4.0%), while traditional channels like sari-sari stores contracted. The retail market remains dominated by supermarkets (39.07%) and sari-sari stores (38.63%), with the total sales value reaching 2,068.3 billion pesos.
As shown in the following chart illustrating 7-Eleven’s global presence, the Philippines maintains a significant position in the company’s international operations:
Quarterly Performance Highlights
Philippine Seven reported mixed results for Q4 2024, with system-wide sales increasing 6.6% to P24.61 billion and operating revenue growing 7.0% to P23.76 billion. Net income showed modest growth of 1.4% to P1.23 billion, while free cash flow surged 69.6% to P3.30 billion.
The following chart details the company’s Q4 2024 financial performance:
However, the company registered negative same-store sales growth (SSSG) of 2.3% in Q4, attributed to several factors including unfavorable weather conditions, multiple typhoons in November, regulatory-related unavailability of a major vape brand, and system downtime. This temporary setback occurred within the context of otherwise strong annual growth.
The quarterly challenges are illustrated in this slide showing the negative SSSG and contributing factors:
Full Year 2024 Financial Analysis
Despite Q4 headwinds, Philippine Seven delivered robust full-year results for 2024. System-wide sales reached P93.45 billion, representing a 13.8% increase year-over-year. Operating revenue grew 13.6% to P88.68 billion, while net income rose 9.4% to P3.81 billion. Free cash flow showed remarkable growth of 72.1% to P10.62 billion.
The company’s annual financial performance is summarized in the following chart:
Profitability metrics showed significant improvement, with operating margin recovering to 6.35% in Q4 and return on equity (ROE) surging to 35.2%. The balance sheet remained strong with total assets of P43,282.3 million, total liabilities of P34,206.1 million, and equity of P9,076.2 million as of December 2024.
The company’s balance sheet and cash flow position is detailed here:
In terms of merchandise mix, food accounts for 83% of sales while non-food represents 17%. Non-alcoholic beverages posted the biggest gain, while the contribution of food service dipped slightly. The store ownership structure shows that 43% of locations are franchised.
Expansion Strategy and Competitive Position
Philippine Seven continued its aggressive expansion in 2024, opening 399 new stores while closing only 37, bringing the total network to 4,130 locations. The company has set an ambitious target of 4,570 stores for 2025, with a planned capital expenditure of P5.5 billion.
The current store network is distributed across the Philippines, with 1,121 stores in Metro Manila, 1,900 in Luzon (excluding Metro Manila), 622 in Visayas, and 487 in Mindanao, as shown in the following geographic breakdown:
In a comparative analysis with 7-Eleven operations in Taiwan and Thailand, the Philippines demonstrated the highest ROE at 35.20%, despite having fewer stores than its regional counterparts. Taiwan has 7,077 stores while Thailand leads with 15,245 locations. The Philippines also showed distinct inventory and payment patterns, with days inventory outstanding at 43.8 and days payable outstanding at 51.8.
The regional comparison is illustrated in this table:
The company faces competition from other convenience store chains in the Philippines, including Alfamart (2,092 stores), Uncle John’s (402), O! Save (401), DALI (800), and Lawson (165).
Forward-Looking Statements
Philippine Seven’s shareholding structure remains stable, with President Chain Store (Labuan) Holdings, Ltd. maintaining majority ownership at 55.32%, followed by foreign investors (20.94%) and the Paterno family (7.66%).
The company continues to expand its service offerings, with 7-Bank ATMs now installed in 84% of all stores (3,493 ATMs), enhancing customer convenience and driving additional foot traffic.
As of April 11, 2025, SEVN shares were trading at P56.00, with a 52-week range of P35.00 to P75.00. The company’s market capitalization stood at P84.7 billion. Recent fundamentals show the stock has experienced a slight decline of 2.65% to P56.65 as of the latest trading session.
With its strong financial performance, expanding store network, and increasing market share in the Philippine retail landscape, Philippine Seven Corporation appears well-positioned for continued growth in 2025, despite the temporary headwinds experienced in Q4 2024.
Full presentation:
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