Philippine Seven (SEVN) Q1 2025 earnings summary

Executive summary

• System-wide sales reached P23.06 billion in Q1 2025, up 4.8% year-over-year.

• Operating revenue grew 5.5% to P21.75 billion, but net income declined 6.0% to P600.8 million compared to Q1 2024.

• Store network expanded to 4,200 locations, with 77 new stores opened and 7 closures in Q1 2025.

• Merchandise gross margin improved to 26.4% from 24.9% year-over-year.

• Philippine Seven Corporation remains the 6th largest 7-Eleven operator globally.

Financial highlights

• Operating income for Q1 2025 was P1.01 billion, up 8.6% year-over-year.

• EBITDA reached P2.15 billion, up 11.8% year-over-year; EBITDA margin improved to 12.0%.

• Net margin decreased to 2.7% from 2.8% in Q1 2024 due to higher net interest expense.

• Free cash flow was negative at -P3.27 billion, reflecting significant investments.

• Cash and cash equivalents fell 50.8% to P7.2 billion, reflecting dividend payouts and capex.

Outlook and guidance

• Targeting 400–500 new store openings in 2025, aiming for 5,000 stores by end-2026.

• Planned CAPEX of P5.5 billion to support expansion.

• Focus on expanding store footprint, ready-to-eat products, and digital payment services.

• Sufficient retained earnings and cash position to support future dividend payouts.