Metro Retail posts P400 million 9 month profit

MANILA, Philippines — Metro Retail Stores Group Inc. (MRSGI) posted a net income of P400.7 million in the nine months to September this year, a turnaround from a net loss of P306.4 million last year, amid headwinds such as soaring inflation, rising interest rates, and weakening peso.

Quarter-on-quarter, Metro Retail recorded a P181.8 million net income, also reversing the P124.5 million net loss in 2021 on the back of pent-up domestic demand and full economic reopening.

The company’s net sales of P26.5 billion during the nine-month period went up by 24.5 percent from P21.3 billion a year ago.

Net sales for the third quarter alone showed a year-on-year increment of 21.5 percent to P9.1 billion as store traffic continued to pick up.

MRSGI president and COO Manuel Alberto said the sustained strong performance of the company during the period means it is likely to achieve full recovery this year and lay the foundation for sustainable growth in the coming years.

“Alongside our goal to provide best-in-class customer experience through operational excellence, we are eager to return the unwavering trust and support of our stakeholders. Metro Retail will continue to gear up and find strategic opportunities to realize strong results this 2022 and an even better outlook in 2023,” he said.

With the recovery in discretionary spending of consumers, the company’s general merchandise business significantly grew during the nine-month period. Growth was 58.6 percent versus the same period last year, while food retail increased by 15.9 percent.

This brings the blended same-store sales growth to 22.3 percent for the three-quarter period, driven by the higher share of business of general merchandise which provides better margins, according to the company.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 110.7 percent to reach P1.6 billion in the January to September period, compared to P771.5 million in 2021.

As of end-September, MRSGI remained in a strong cash and liquidity position at P4 billion while bank debt level was manageable at P3 billion.