“The level of average sales remains below 80 percent of pre-covid level and is a drag to profitability,” Phil-Seven said in a regulatory filing.

READ: Paterno family eyes 320 ATMs in 7-Eleven stores

System-wide sales, which account for the retail sales and commission income, fell 7.7 percent to P22.2 billion while same store sales declined by 13.9 percent.

Revenue from contracts with customers reached P21.1 billion, down 5.1 percent while revenue from merchandise sales fell 6.5 percent to P18.6 billion. Franchise revenue from 1,514 franchised stores was likewise down 7.7 percent to P1.76 billion.

READ: Berjaya PH trims stake in 7-Eleven Malaysia

Other income, however, more than doubled to P138.9 million.

Commission income jumped 67.8 percent due to the surge in e-money cash in transactions. The shift towards digital payments accelerated during the pandemic and the 7-Eleven stores have become the most preferred channel for e-wallet top up and bills payment.

Interest incurred to service debt climbed 25.3 percent to P66 million. The company’s outstanding loan balance amounted to P4.24 billion at the end of June.

READ: 7-Eleven suffers P493.5M loss in Q2 due to lockdown

After reassessing the market, the company has slowed down its expansion due to movement restrictions implemented by the government to curb the spread of the virus.

It opened 72 new 7-Eleven stores in first half, boosting its total network to 3,004, mostly located in Metro Manila and major markets in Luzon. Out of the total, 60 percent are operating on a 24/7 basis, 35 percent during daytime and less than 5 percent are temporarily closed.

PSC opened a new concept store in Meycauayan Bulacan. This is a modular store made from prefabricated materials that enable faster store opening.

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