Philippine Seven (SEVN) PSE STAR (Strengthening Access and Reach): Investor Day summary

Business performance and expansion

• Store network expanded to 4,268 as of June 2025, with a strong pipeline targeting 5,000 stores by end-2026.

• 53% of stores are corporate-owned, 47% franchise-operated, with a 50% franchise target for new openings, especially in Visayas and Mindanao.

• 500 new stores planned for 2025, with 70% in Visayas and Mindanao; logistics investments include new warehouses and distribution centers.

• Store sizes outside Metro Manila are larger, and new concepts focus on enhanced dining and food service.

• CapEx for 2025 set at PHP 5.5 billion, mainly funded internally, supporting growth and store upgrades.

Financial highlights

• Q2 2025 system-wide sales reached PHP 25.41 billion (+6.2%), with H1 sales at PHP 48.47 billion (+5.6%).

• Operating income for H1 2025 rose 8.2% to PHP 2.77 billion; net income up 0.7% to PHP 1.78 billion.

• Gross profit increased 12.5%, driven by strong non-alcoholic beverage sales; operating expenses also rose 12.5% due to expansion.

• Cash reserves grew 27.74% to PHP 9.97 billion; equity up 53% to PHP 10.85 billion.

• Positive free cash flow of PHP 152.27 million, with improved working capital cycle.

Product innovation and customer engagement

• Proprietary brands and ready-to-eat offerings, such as Crunch Time and City Café, are key differentiators.

• Promotions like Blind Cups collectibles and 7-Eleven Day drive store traffic and engagement.

• Loyalty platform Click offers exclusive discounts, and product mix is optimized for essentials and fast food.

• Ready-to-eat items contribute about 25% of sales, with investments in new equipment and satellite kitchens.

• Private label expansion is under study, with current offerings in select categories.