Robinsons Retail income rose 13% last year on strong sales

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(Source: Business Mirror | March 26, 2018)

Robinsons Retail Holdings Inc. (RRHI) said its core income rose 13 percent last year on stronger sales, despite the higher base due to the 2016 elections.

RRHI, the retail arm of the Gokongwei family that’s also buying Rustan’s group’s grocery business, said its income hit P4.7 billion last year, from P4.1 billion in the previous year. The said figure strips out its interest from bonds, equitized net earnings from the 40-percent stake in Robinsons Bank and unrealized forex gains or losses.

Including the said items, net income rose at a narrower rate at 8 percent to P5.6 billion, from P5.2 billion in the previous year.

Consolidated net sales expanded by 9 percent last year to P115.2 billion, from P105.3 billion in the previous year, brought about by the same store sales growth of 2.7 percent, the sales contribution from the 140 new stores opened during the year and the full year consolidation of new acquisitions The Generics Pharmacy (TGP), De Oro Pacific Home Plus and Chic Centre.

At end of 2017, the supermarket segment recorded same stores sales growth of of 2.5 percent, do-it-yourself stores at at 6.4 percent, convenience stores at 2.9 percent, drugstores at 1.6 percent and specialty stores at 7.8 percent.

RRHI ended the year with a total of 1,718 stores comprising of 154 supermarkets, 49 department stores, 193 do-it-yourself stores, 496 convenience stores, 484 drugstores and 342 specialty stores. This is on top of the 2,015 franchised stores of TGP.

The group’s gross floor area, excluding TGP, expanded by 10 percent year-on-year to 1.15 million square meters.

The supermarket segment continued to be the group’s largest segment, accounting for 45.4 percent of consolidated net sales and 43.7 percent of consolidated earnings before interest, depreciation and amortization.

The company is further expanding its supermarket as it buys the Rustan’s group’s grocery-chain business, which includes stores under the brands Shopwise, Rustan’s Supermarket and Wellcome, for P18 billion.

In a deal announced last week, RRHI is buying the 100-percent stake of Dairy Farm International Holdings Ltd. in Rustan Supercenters Inc.

The deal involves Mulgrave Corp. B.V.’s stake in Rustan Supercenter, through a share-for-share swap involving RRHI’s primary common shares. Mulgrave is part of Dairy Farm’s group.

Certain members of the Gokongwei family intend to sell some of their shares, which will result in the family effectively owning 51 percent of the expanded capital of RRHI, the company said. After the completion of the secondary sale tranche, Dairy Farm, through Mulgrave will own 18.25 percent of RRHI.

“This transaction is intended to be completed once the necessary approvals are obtained from the shareholders of RRHI, the Philippine Competition Commission and the Securities and Exchange Commission,” it said.

 

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