Philippine Seven (SEVN) Q4 2024 earnings summary

Executive summary

• Achieved system-wide sales of P93.45 billion in FY 2024, up 13.8% year-over-year, with net income rising 9.4% to P3.81 billion.

• Q4 2024 system-wide sales reached P24.61 billion (+6.6%), net income P1.23 billion (+1.4%), and free cash flow P3.30 billion (+69.6%).

• Store network expanded to 4,130 locations, with 399 openings and 37 closures in 2024; 52% corporate-owned and 48% franchise-operated, with expansion focused on Visayas and Mindanao.

• Declared and paid a record P7.26 billion cash dividend and issued a 100% stock dividend, compensating for three years without dividends.

• Ended the year with strong liquidity, minimal debt, and robust operating cash flow of P13.1 billion.

Financial highlights

• Operating revenue for FY 2024 was P88.68 billion, up 13.6% year-over-year; merchandise sales up 14.1% to P80.6 billion.

• Gross profit increased 14.6% to P22.4 billion; merchandise gross margin improved to 27.8%.

• Free cash flow for the year surged 72.1% to P10.62 billion.

• Cash position at year-end was P11.09 billion, a 5% increase from 2023.

• Total assets grew 9.5% to P43.3 billion, while equity declined 27.8% to P9.08 billion.

Outlook and guidance

• Targeting 400–500 new store openings annually, aiming for 5,000 stores by end-2026, with a planned CAPEX of P5.5 billion.

• Focused on expanding digital payment solutions, ready-to-eat product innovation, and financial services.

• Plans to maintain a minimum annual dividend payout ratio of 40% going forward.

• Expansion pipeline robust, with over 200 new stores already lined up for 2025.