(Source: Business World | 12 May 2017)
Robinsons Retail Holdings, Inc. (RRHI) rode on its expansion program and higher same-store sales to deliver a 27% increase in earnings in the first quarter of 2017, despite the impact of election-related spending that gave its bottom line a boost in the prior year.
In a statement, the Gokongwei-led multi-format retailer said it registered a net income attributable to equity holders of the parent of P996 million in the quarter ending March, up 26.9% from P785 million a year ago.
Excluding the effect of interest income on available-for-sale investments, unrealized foreign exchange gains or losses and equity earnings from its 40% stake in Robinsons Bank, core net income increased 21% to P842 million during the period from P696 million in 2016.
Consolidated net sales climbed 13.3% to P25.7 billion from P22.7 billion in three-month period, citing the share of new stores including the full-quarter contribution of companies acquired in 2016 namely, The Generics Pharmacy, De Oro Pacific Home Plus and Chic Center.
Same-store sales went up 3.2% despite coming from a high base as a result of election-related spending that inflated sales a year ago. RRHI logged in a 9% uptick in same-store sales in the same period a year ago.
The supermarkets booked a 2.8% increase in same-store sales, do-it-yourself stores at 8.4%, drugstores at 3.8% and specialty stores at 6.5%.
“Our consolidated growth across indicators was strong despite coming from a high base due to last year’s pre-election spending. We aim to further our reach through relevant acquisitions alongside strengthening our current formats,” RRHI President and Chief Operating Officer Robina Gokongwei-Pe was quoted in the statement as saying.
Gross profit margin expansion and sustained cost saving measures at the store level fueled a 28.2% increase in operating profit to P1.2 billion from P904 million.
At end March, Robinsons Retail was operating a total of 1,588 stores, expanding its total gross floor area by 9.6% year on year to 1.06 million square meters. It also operated 1,927 outlets under The Generics Pharmacy.
Shares in RRHI fell 40 centavos or 0.52% to close at P76.60 apiece.
— Krista Angela M. Montealegre
