Philippine Seven (SEVN) Q4 2025 earnings summary

Executive summary

• Operates the largest convenience store network in the Philippines, with 4,491 stores as of year-end 2025, up 8.7% from 2024, and aims to reach 5,000 stores by end-2026.

• Net income for 2025 declined 5.5% year-over-year to P3.60 billion, despite a 7.2% increase in revenue to P95.06 billion, due to higher operating and interest expenses.

• Same-store sales growth (SSSG) contracted by 0.9% for the year, with Metro Manila stores seeing the sharpest decline at -2.6%, while Mindanao posted positive growth at 1.5%.

• The company continued to invest in digital payments, deploying card terminals to over 1,000 stores and expanding ATM installations to 3,903 locations.

Financial highlights

• System-wide sales grew 6.4% to P99.45 billion for 2025; Q4 system-wide sales rose 11.9% year-over-year.

• Revenue from contracts with customers increased 7.2% to P95.06 billion.

• Operating income rose 1.6% to P5.72 billion; operating margin compressed to 6.02% from 6.35%.

• Net income margin decreased to 3.79% from 4.30% in 2024.

• EBITDA for the year was P10.75 billion, up 6.0% year-over-year.

• ROE improved to 35.6% from 35.2% in 2024.

• Cash and cash equivalents at year-end were P10.26 billion, down 7.5% from 2024.

Outlook and guidance

• Plans to open over 500 new stores in 2026, targeting 5,000 stores by year-end.

• Expansion to be supported by new distribution centers in Visayas and Mindanao, expected to be operational in early 2026.

• Dividend policy maintained at a minimum 40% payout of prior year net income.