President Chain Store (2912) Q2 2024 earnings summary

Executive summary

• Consolidated revenue for the first half of 2024 rose 7% year-over-year to NT$163.9 billion, with net profit up 17% to NT$6.3 billion, driven by store expansion and strong performance from Taiwan and Philippines 7-Eleven, Cosmed, and other subsidiaries.

• Profit growth was supported by higher operating profit, increased interest income, and gains from the sale of Shandong Ginza/Yinzuo supermarkets.

• Earnings per share for the first half of 2024 was NT$6.06, a 17.2% increase year-over-year.

• Both operating profit and net profit have surpassed pre-pandemic levels, with continued growth in 2024.

• Gross profit margin remained stable at 34%, reflecting improved cost control and higher sales.

Financial highlights

• 1H24 consolidated revenue reached NT$163.9 billion, up 7% year-over-year; net profit attributable to the parent was NT$6.3 billion, up 17.2%.

• EPS for 1H24 was NT$6.06, a 17.2% increase year-over-year.

• 2023 consolidated revenue was NT$317.0 billion, up 9.2% year-over-year; profit attributable to owners was NT$10.6 billion, up 14.4%.

• Dividend distribution for 2023 was NT$9.00 per share, totaling NT$9.36 billion.

• Net cash flows from operating activities reached NT$20.0 billion, up from NT$15.1 billion year-over-year.

Outlook and guidance

• Store expansion in Taiwan is expected to add 200–300 stores in 2024, with the Philippines targeting a net increase of 300–400 stores annually.

• Continued focus on digital integration, differentiated products, and logistics infrastructure investments.

• Plans to maintain market share above 50% in Taiwan and accelerate growth in the Philippines.

• Emphasis on ESG, risk management, and achieving net zero by 2050.