Metro Retail Group posts lower revenues

MANILA, Philippines - Gaisano-led Metro Retail Stores Group Inc. (MRSGI) ended the first nine months of the year with P273 million in net income, down from the P344 million recorded in the same period last year.

Net sales rose 6.1 percent to P23.7 billion while same-stores sales went up 2.9 percent.

Same-store profitability also increased as the company continued to implement control and rationalization initiatives.

MRSGI chairman and CEO Frank Gaisano said the company would continue improving its sales and cost-efficiencies to drive profitability.

“Store-level profitability will be our priority in subsequent months as we strive to achieve our targets in newly-opened stores and new markets,” he said.

The company reported “significantly lower” inventory level, while its cash reserves grew stronger at P2.88 billion. It also remains debt-free.

“MRSGI remains financially robust to pursue its expansion and store enhancement plans,” the company said.

The company also revealed it was on track to reach its five-year target to double its gross floor area (GFA) to 800,000 square meters.

It has already secured about 40 percent of the target or 160,000 square meters, which will open in the next two years.

MRSGI also entered into a partnership with Ayala Land for the establishment of new stores in four new Ayala commercial developments in the key cities of Bacolod, Iloilo, Cebu, and Metro Manila.

The company is a subsidiary of Viscal Group, which includes Wealth Bank, which is jointly owned by Woori Bank, Korea’s second largest bank; Taft Properties; and HT Land, a joint venture between Taft and Hong Kong Land.