Based on a report to the Securities and Exchange Commission, PSC said its first quarter net income this year is more than the P5.58-million net income that it earned during the same period last year.

The company attributed its better bottom line during the January to March period of the current year to the aggregate growth in revenues complimented by its effective cost management.

For the first three months of 2009, PSC registered an eight percent growth in revenues from merchandise sold to P1.36 billion, from P1.26 billion in the same period last year due to the continuous expansion of its store network.

PSC ended the first quarter with 371 stores in Metro Manila and Luzon, a 17 percent increase compared to the previous year’s level of 318. PSC operates the largest convenience store network in the country.

Moreover, the company noted that the aggregate number of franchised stores reached 203 and this accounted for 55 percent of total operating stores, as of the first quarter of the year. “The increasing store base has driven the first quarter’s profitability amidst the challenges posed by the global economic slowdown,” PSC said in a statement.

System wide sales (which represents the overall retail sales to customers of company and franchise operated stores) rose by 12 percent to P1.63 billion from January to March this year, vis-à-vis P1.45 billion reported in the first quarter last year.

Franchise revenues increased to P72.09 million for the first quarter of this year, from P52.97 million in the same quarter last year due to the increased number of franchise-operated stores.

“7-Eleven is working to optimize the earnings of its stores by improving merchandise assortment and ensuring stock availability. It also aims to open new stores in strategic locations to further strengthen its foothold in the markets where it is present,” the company said.

“The company also continues to evaluate the performance of stores that dragged profitability. In the first quarter, seven new stores were opened and four under-performing stores were closed. These efforts are geared towards the goal of the organization of enhancing shareholder value,” it added.

The company said it will continue to promote its franchising business as a good investment opportunity for those who want to get into the retail industry. PSC intends to increase the number of franchise-owned stores to more than half of its total network of branches this year.