Metro Retail swings to P33 million profit in Q1

MANILA, Philippines — Metro Retail Stores Group Inc. (MRSGI) reported a net income of P33.34 million in the first quarter of the year,  a turnaround from the P126.47 million net loss it posted in the same period last year.

MRSGI said foot traffic in its stores continues to pick up on the back of more relaxed health protocol restrictions.

“Our positive financial outcome attests to our continuous efforts in increasing efficiency, improving merchandise assortment and sourcing, and expanding omni channel strategy, ‘’ said Metro Retail president and COO Manuel Alberto.

“We will continue to offer a great shopping experience to our existing and future customers and pursue multifaceted initiatives to be positioned for progressive growth,” he said.

Amid the Omicron surge in January and the relatively lean first quarter after peak consumer spending in the Christmas season, net sales jumped by 23 percent to P8.51 billion. The increase was mainly driven by a 23.4 percent rise in comparable store sales and the contribution of four new stores that opened last year.

MRSGI also benefited from the country’s recovering economy and easing mobility; hence, both its food retail and general merchandise businesses grew by 21.2 percent and 29.8 percent, respectively.

The company continued to improve its operating efficiency as a result of its ongoing implementation of cost-saving measures and optimization initiatives.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter grew by 63.2 percent to P386.38 million.

Metro Retail also posted a strong cash and liquidity position at P3.58 billion while debt was kept manageable.

The company recently opened two new stores – Metro Paseo Supermarket in Cebu City and Metro Hilongos Supermarket in Leyte, bringing its current store network to 63.

The company is committed to expanding its brick-and-mortar network but at the same time, Metro Retail also acknowledges the growing significance of online shopping and the integral role of having an omni-channel presence beyond the pandemic.