MANILA, Philippines - Philippine Seven Corp., which holds the franchise for global convenience store chain 7-Eleven, is planning to open up to 30 stores in Cebu before the end of 2012.
Philippine Seven president and chief executive officer Jose Victor Paterno said ten 7-Eleven outlets will be opened in Cebu this month. The rest of the stores will be opened within the year.
"We believe that now is the right time (to expand outside Luzon) given the maturity of the industry and the growth of the economy," he said.
The company's expansion plans will help it hit the target of having 1,000 stores in the Philippines by 2013.
Philippine Seven's net income jumped 32% in the second quarter to P108 million from P81.6 million posted in the same quarter last year, due to higher operating income and strong sales growth.
This pushed Philippine Seven's net income for the first six months of the year to P164.3 million, 38.3% up from P118.7 million last year.
The company opened 59 new 7-Eleven stores in the first half, bringing its total number of stores to 746.
Also, Philippine Seven's board of directors increased its authorized capital stock to P600 million from the current level of P400 million with a par value of P1 per share.
The capital increase will cover the planned 15% stock dividend declaration. Terms of the offering has yet to be finalized.