Metro Retail Stores Group Inc. said Wednesday net income last year dropped 33 percent to P618 million due the adverse impact of inflation on sales and magnified by the absence of one-off gains from an accounting adjustment on leases and insurance claims made in 2022.
MRSGI sales proved flat at P38.3 billion. Same-store sales growth dipped slightly on lower wholesale business contribution.
General merchandise posted a 4.7 percent growth on stronger sales of apparel, electronics, appliances, and travel gear while food retail declined by 1.2 percent due to bulk wholesale business scaling down versus last year. Excluding bulk transactions, food retail sales continued its expansion at 6.2 percent year-on-year.
The listed company posted gross margin of 21.6 percent, higher than only 21.1 percent in 2022. Operating expenses increased by 7.9 percent due largely to rent escalations and higher manpower expenses related to new stores and government mandated minimum wage increases.
Earning before interest, taxes, depreciation and amortization slipped to P2.2 billion last year from P2.7 billion the year prior.
“Even with the challenged outturn, MRSGI reiterates its commitment of offering improved services to customers and better returns to stakeholders underpinned by its strategic initiatives to bolster growth and stability in 2024 and onwards,” said MRSGI president and chief operating officer Manuel Alberto.
The company’s expansion was highlighted by the debut of its Metro Value Mart in Gen. Trias, Cavite and the opening of two new Metro Supermarkets in Lapu-Lapu City, Cebu and Alang-alang, Leyte.
MRSGI also started renovating its flagship stores to modernize their look and feel as well as refresh the merchandising brand aligned with the evolving shopper’s needs.
MRSGI introduced the new and improved Mareng Ems Program in 2023 to enhance collaborations and provide a comprehensive support system for businesses, primarily sari-sari stores and hospitality businesses. It also revamped the ShopMetro online channel and launched its own mobile app under the same brand that helped push the double-digit growth of its e-commerce business.
Alberto further said the recent inauguration of its Metro Distribution Center in Sta. Rosa, Laguna helped strengthen the company’s logistics system and laid the foundation for MRSGI’s expansion pipeline throughout Luzon in the coming years.
MRSGI recently declared regular cash dividend amounting to P194.9 million, equivalent to P0.06 per share, and a special cash dividend that total P324.8 million, or P0.10 per share.
