Philippine Seven (SEVN) Q2 2025 earnings summary

Executive summary

• Q2 2025 system-wide sales reached ₱25.6 billion, up 7.2% year-over-year, with operating revenue at ₱24.8 billion, up 9.3% year-over-year.

• Net income for Q2 2025 was ₱1.18 billion, a 4.6% increase year-over-year, reversing a prior quarter decline and supported by seasonal factors and improved merchandise gross profit.

• 1H 2025 system-wide sales totaled ₱48.47 billion (+5.6%), with operating revenue at ₱46.54 billion (+7.5%) and net income at ₱1.78 billion (+0.7%).

• Merchandise gross margin improved to 28.5% in Q2, driven by strong non-alcoholic beverages and health & beauty sales.

• Store expansion outside Metro Manila accelerated, with 177 new stores opened and 39 closures in H1 2025, bringing the total to 4,268 stores.

Financial highlights

• Q2 2025 operating income was ₱1.76 billion (+8.0% YoY); H1 2025: ₱2.77 billion (+8.2% YoY).

• EBITDA margin in Q2 2025 was 12.2%, up from 11.4% in Q2 2024.

• Net margin for Q2 2025 was 2.7%, down from 3.3% in Q2 2024; net income margin for H1: 3.82% (down from 4.07% YoY).

• Book value per share increased to ₱7.17 from ₱6.00 at year-end 2024.

• Cash position as of June 30, 2025, was ₱10.0 billion, with total assets at ₱43.59 billion.

Outlook and guidance

• FY 2025 store network target is 4,500 stores, with a planned CAPEX of ₱5.5 billion.

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

• Migration to a new payment switch in Q3 2025 expected to resolve service downtime and boost service-related sales.

• Focus on expanding ready-to-eat product offerings and digital payment services.

• Positive free cash flow of ₱152.27 million in H1 2025, supported by receivables collection.