Robinsons Retail more than doubles net income to P2.68 B in 2013

MANILA, Philippines - The multi-format retail chain of the Gokongwei family more than doubled its earnings last year due to new branches and the full consolidation of a drug store network.

In a regulatory filing, Robinsons Retail Holdings Inc. (RRHI) said its unaudited consolidated net income surged to P2.68 billion in 2013 from P1.2 billion a year earlier.

Consolidated net sales jumped 17.2 percent to P67.25 billion from P57.39 billion in 2012.

“The surge in net earnings was largely due to the increase in sales from new stores, the full year consolidation of South Star Drug which was acquired in July 2012, the resilient same-store sales growth of 2.5 percent, as well as the expansion in gross margins and steady operating expenses,” RRHI said.

In 2013, RRHI added 152 new stores to end the year at 1,064 from 912 stores in 2012. The Philippines’ second largest multi-format retailer targets to end 2014 with 1,400 stores nationwide.

RRHI said the supermarket segment continued to take up the largest share of the group’s consolidated net sales at 48.3 percent. It was followed by department stores at 17.7 percent, DIY stores at 10.5 percent, drug stores at 9.3 percent, specialty stores at 7.9 percent and convenience stores at 6.3 percent.

Last year, gross profit picked up 30.4 percent to P14.312 billion from P10.97 billion.

“RRHI has been able to get better support and discounts from suppliers because of its increasing scale as well as from the offering of more value-added services to its vendors,” the company said.

Hence, consolidated gross profit margin expanded 21.3 percent in 2013 from 19.1 percent in 2012.

RRHI is the company behind Robinsons Supermarket, Robinsons Department Store, South Star Drug, Handyman Do it Best, True Value, Howards Storage World, Robinsons Appliances, Toys R Us, Saizen and a selection of international fashion apparel.

RRHI acquired last year Shiseido stores operator Beauty Skinnovations Retail Inc. and Eurogrocer Corp., an operator of six supermarkets in Northern and Central Luzon. The company also plans to venture into home furniture, sporting goods, school and office supply, and coffee shops.