Philippine Seven (SEVN) investor relations material

Executive summary

• Net income for Q3 2025 declined 26.2% year-over-year to P600.4 million, mainly due to a 3.9% drop in same-store sales from adverse weather and lower store traffic.

• Systemwide sales rose 2.2% to P23.44 billion, while operating revenue grew 4.6% to P22.6 billion, driven by network expansion and higher franchise revenue.

• Store count increased by 8.6% year-over-year to 4,366, with 276 new stores opened and 40 closures in the first nine months.

• Ready-to-eat products and digital payment services continued to drive differentiation and customer loyalty.

Financial highlights

• Q3 2025 net income: P600.4 million (-26.2% YoY); nine-month net income: P2.38 billion (-7.8% YoY).

• Q3 systemwide sales: P23.44 billion (+2.2% YoY); nine-month systemwide sales: P71.91 billion (+4.5% YoY).

• Q3 operating income: P1.07 billion (-13.6% YoY); nine-month operating income: P3.84 billion (+1.1% YoY).

• Merchandise gross margin improved to 28.7% in Q3 and 27.9% YTD.

• General and administrative expenses rose 11.0% in Q3, reflecting network expansion and higher utility and service costs.

• Net interest expense increased 72.8% in Q3 due to higher lease liabilities and lower interest income.

Outlook and guidance

• Sales expected to normalize in Q4 with improved weather and peak shopping season.

• Targeting 5,000 stores by end-2026, with up to 500 new stores annually supported by favorable economic outlook.

• Dividend payout ratio to be maintained at a minimum of 40% of prior year net earnings.