MANILA — Philippine Seven Corp. (PSC), the listed operator of 7-Eleven convenience stores in the Philippines, reported a 1.4% year-on-year increase in third-quarter attributable net income to P608.74 million from P600.38 million, as higher operating expenses weighed on earnings despite double-digit sales growth.

Gross revenue for the July-to-September period climbed 22.7% to P28.03 billion from P22.85 billion a year earlier, according to the company's quarterly financial disclosure to the Philippine Stock Exchange on Wednesday.

PSC, the exclusive Philippine licensee of the 7-Eleven brand, said same-store sales growth — a like-for-like retail measure that tracks stores open long enough for period-over-period comparison — accelerated to 14.2% in the third quarter from 7.8% in the preceding quarter, reversing the decline recorded a year earlier. The company attributed the pickup to higher average transaction values and increased customer traffic, with all regions posting double-digit same-store sales growth.

The rollout of card payment terminals, which covered 97% of its stores as of end-September, also supported a recovery in sales of nonalcoholic beverages and cigarettes. Digital payments, including card transactions and point-of-sale scan-to-pay transactions, accounted for more than 14% of merchandise sales during the quarter.

The payment infrastructure expansion follows PSC's July announcement of plans to broaden cashless options across its store network to improve customer convenience. By the end of May, cashless acceptance had been extended to more than 4,000 stores, up from over 1,000 at the end of 2025. Accepted methods include credit and debit cards, QR Ph — the Philippines' national QR code payment standard — electronic wallets, and other cashless payment options.

System-wide sales, comprising merchandise sales and service income across all stores, rose 23.9% to P29.05 billion in the third quarter. Revenue from contracts with customers, which includes merchandise sales, franchise revenue, and service income, increased 22.8% to P27.75 billion.

PSC said an improved sales mix helped lift gross margins, although profitability was affected by differences in the timing of other income related to its increased share of cigarette manufacturers' sales volumes. Operating expenses also rose on higher utility and logistics costs amid elevated fuel prices.

"In response, the Company has implemented mitigation measures such as partnering with retail electricity suppliers and consolidation of deliveries in far locations," PSC said. The measures line up with the two cost drivers the company cited: utility charges and logistics spending.

For the first nine months of 2026, PSC's attributable net income rose 3.2% to P2.45 billion from P2.38 billion a year earlier. Gross revenue for the January-to-September period increased 17.5% to P82.18 billion, while expenses grew at a faster pace of 18.2% to P78.92 billion. The company's fourth-quarter disclosure to the exchange will provide the next reading on those revenue and expense lines.

PSC shares fell by 45 centavos, or 1.41%, to close at P31.50 apiece at the local bourse on Wednesday.

Based on reporting by Alexandria Grace C. Magno for BusinessWorld.