Metro Retail Stores Group Inc., the listed retail business of the Gaisano Group, said Monday first-quarter net income dropped 16 percent year-on-year to P50.3 million due mainly to narrower margins brought by lower share to business of general merchandize.
MRSGI said net sales rose 4.8 percent to P8.7 billion, highest recorded first-quarter sales since the company became a publicly listed company in 2015. Same store sales in the first quarter were up by 2.8 percent.
The food retail segment increased by 7.9 percent on strong sales of basic groceries while general merchandize edged lower by 2.9 percent amid the spending constraint on discretionary items due to persistent high inflation.
With the reduced share to business of general merchandise, MRSGI’s blended gross margin slightly declined to 20.8 percent from 21.9 percent in the first quarter of 2023. Cost-saving and optimization initiatives helped trim operating expense to sales ratio to 20.4 percent versus the prior year’s 21.0 percent.
The company held a strong cash position of P3.2 billion and managed to keep a low level of bank debt-to-equity ratio at 0.30.
Last January, MRSGI opened its Metro Value Mart in Lapu-Lapu City, which brings its network to 64 stores. The company also took significant steps towards increasing its presence in the Visayas with the groundbreaking of five supermarkets in strategic areas in Cebu and Leyte.
MRSGI recently inaugurated its 10-hectare Metro Distribution Center in Sta. Rosa, Laguna to strengthen its logistics system and lay the foundation for the expansion pipeline throughout Luzon over the next few years.
“Looking ahead to 2024, we are poised for growth with cautious optimism. Our strategic plans are geared towards calibrated expansion, enhancing our online presence, and continuing to modernize our stores,” MRSGI president and chief operating offier Manuel Alberto said.
