Philippine Seven (SEVN) investor relations material

Executive summary

• Net income for Q1 2026 rose 4.7% year-over-year to ₱628.8 million, with EPS at ₱0.42, driven by a 14.2% increase in operating revenue and a 4.4% rise in same-store sales growth (SSSG).

• Systemwide sales grew 13.2% to ₱26.1 billion, with a net addition of 84 stores, bringing the total to 4,575 nationwide.

• Merchandise gross margin improved to 27.7%, and overall gross profit margin increased to 34.1% due to gains from price protection orders and a better sales mix.

• Store expansion and digital payment initiatives, including ATM deployment and new payment platforms, supported growth and customer convenience.

Financial highlights

• Revenue from contracts with customers rose 14.2% to ₱24.84 billion; cost of merchandise sales increased 12.9% to ₱16.37 billion.

• Operating income increased 8.5% to ₱1.10 billion; EBITDA up 12.2% to ₱2.41 billion.

• Net margin declined to 2.53% from 2.76% due to higher interest expense from lease liabilities.

• Cash and cash equivalents at quarter-end were ₱6.15 billion, down from ₱7.22 billion a year earlier, reflecting higher capex and working capital needs.

Outlook and guidance

• Plans to open over 500 new stores in 2026, aiming for 5,000 stores by year-end.

• Expansion focuses on underserved provincial markets, leveraging first-mover advantage and digital innovations.

• Ongoing inflation and elevated fuel prices expected to persist, with mitigation strategies in place.