Metro Retail Stores Group Inc. reported net income falling 36 percent over nine months this year to only P254.6 million from last year’s P400.7 million due to higher operating expenses offset only partially by improvements in gross margins.
The company bared net income of only P117.7 million in the third quarter alone, down 35 percent from last year’s P181.76 million.
“Our last three quarterly results showed an improving trend quarter-on-quarter. Before the year concludes, we anticipate a lift in our performance as the holiday season draws in more robust consumer spending,” MRSGI president and COO Manuel Alberto said.
He noted the 4 percent growth in net sales during the quarter to P9.63 billion from last year’s P9.19 billion due better sales from existing stores and incremental sales from newly opened stores.
By business, general merchandise increased 4 percent during the quarter and 6 percent over nine months on the back of back-to-school activities and increased travel activities.
Food retail expanded 4 percent during the quarter, mainly from higher grocery consumption and improved marketing and store initiatives. For the nine-month period, food retail was 2 percent lower due to reduced wholesale transactions.
Net sales over nine months reached P26.5 billion, slightly lower than last year.
In August, MRSGI opened two new supermarkets in Lapu-Lapu City, Cebu and Gen. Trias, Cavite. With the closure of two underperforming stores earlier this year, the net store count currently stands at 62.
In the coming months, the company will continue to pursue its acquisition and expansion plans, especially in the Visayas. Alongside this, MRSGI will refresh its brand merchandising and online engagements consistent with the changing shopping needs and aspirations of customers, it said.
