PHL 7-Eleven master franchisee reports lower earnings

Philippine Seven Corp., the master franchise holder of 7-Eleven convenience stores in the country, reported that — despite higher sales — its net income declined in the first nine months. Earnings in January to September dropped 2 percent to P174.7 million, while system wide sales improved 16 percent to P7.7 billion, Philippine Seven said in a report to the Philippine Stock Exchange. "Cost of goods sold went up by the same rate resulting into same level of average gross profit," the company said. Third quarter net income, meanwhile, improved by 19 percent to P56 million from P47.2 million. "System wide sales, which account for sales of all corporate and franchise operated stores, grew by 19 percent in Q3 to P2.6 billion. Number of stores reached 632 at the end of September from only 520 last year," Philippine Seven said. — CMA/VS, GMA News