Metro Retail Stores Group Inc. reported a net income of P60.0 million in the first quarter, an 80 percent increase from P33.3 million last year as better operating margins trumped a decline in net sales.
Net sales in the first quarter was down 2.4 percent on year to P8.3 billion, with the decline in same-store sales higher at 4.6 percent.
Metro Retail attributed the decrease in net sales to bulk wholesale transactions that beefed up first-quarter sales last year. Excluding these bulk transactions, sales for the first quarter would have been 12 percent higher.
The company said blended gross margin was up 2.9 percentage points to 21.9 percent on account of the higher share to business of general merchandise that generated better margins.
Operating expenses increased by 13.8 percent amid higher rent and utilities expenses and the additional stores that opened in April last year. This was partially offset by the increases in rental income and interest and other income.
As a result of the expansion in retail sales and higher gross profit margins, Metro Retail posted an increase to 6.2 percent in earnings before interest, taxes, depreciation, and amortization to P410.2 million.
Manuel Alberto, president and chief operating officer, said the strong performance in the first quarter reinforced their optimistic outlook for the rest of 2023. He said Metro Retail “will continue to seek new opportunities to serve our customers better and to create financial value for our stakeholders.”
