Metro Retail Group’s net profit rises 23.5% to P344M in 9 months


(Source: Manila Bulletin | December 15, 2015)

Metro Retail Stores Group, Inc. (MRSGI), the retail arm of the Gaisano family, reported yesterday a 23.5 percent jump in net income to P344 million in the first nine months of 2015 from P278 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said the strong performance came on the back of net sales growth of 15 percent and reduced operating expenses.

Gross revenue rose to P22.53 billion from P19.6 billion. The net sales improvement was supported by strong same store sales growth of 9.5 percent, led by the hypermarket segment.

Growth in revenues of new stores, where MRSGI added two supermarkets and four hypermarkets after September 30, 2014, also contributed to the overall sales increase.

Income before income tax grew 24 percent to P492 million in the first nine months of 2015 from P397 million generated during the same period last year.

This was also a significant improvement compared to the first half results, which recorded an increase of 21.2 percent in pre-tax earnings.

“Our third quarter results reflect our customers and partners’ unwavering support for MRSGI,” said MRSGI chairman Frank S. Gaisano.

He added that “it also underscores our confidence in the company’s capacity for expansion and widening its customer base, as the market continues to believe in the MRSGI retail experience. We are particularly encouraged by the performance of our stores in the Visayas region.”

As of November 24, 2015, METRO has 46 stores nationwide, composed of 24 supermarkets, 12 hypermarkets and 10 department stores. MRSGI is a recognized market leader in the Visayas.

The company also disclosed that its bank debt level remained very low at P950 million, even as the proceeds from its public listing are expected to add around P3.4 billion by year-end to the company’s net worth, which stood at P2.7 billion as of September 30, 2015.

MRSGI’s recent debut on the PSE was the largest new equity issuance — at P3.6 billion – for the year 2015, which saw only three initial public offerings (IPOs) owing to volatile global markets.

— By James Loyola