President Chain Store Corporation, Taiwan’s dominant convenience store operator, delivered mixed first-half results that highlight the challenges of maintaining profitability while pursuing aggressive expansion.
The Taipei-based company reported consolidated revenue of NT$172.02 billion ($5.35 billion) for the six months ended June, marking a new record for the period. However, net profit declined 5.75% to NT$5.94 billion ($184.4 million), according to the semi-annual report released Tuesday.
The company’s 7-Eleven chain operated 13,125 stores worldwide as of last year and holds nearly 52% of Taiwan’s convenience store market. While subsidiary operations including Philippines 7-Eleven, Cosmed drugstores, and Taiwan Starbucks contributed to revenue growth, the profit margin compression suggests rising operational costs are outpacing sales gains.
President Chain Store’s strategy of diversifying beyond traditional convenience retail into services and experiential formats reflects intensifying competition in Taiwan’s saturated market. The company has expanded its service mall concept to 62 locations, attempting to capture higher-margin opportunities.
Looking ahead to the third quarter, management cited summer seasonality and vacation spending as potential drivers, though the sustainability of revenue growth without corresponding profit expansion remains questionable. The stock trades at premium valuations despite the earnings headwinds, indicating investor confidence may be misplaced.