MerryMart Consumer Corp., a listed retailer, reported a modest uptick in earnings for the first nine months of 2025, as stronger margins and higher operating income helped offset weaker sales tied to store and systems upgrades ahead of a planned expansion push.
The company posted a consolidated net income of P21.3 million for the period ending September 30, 2025, up 2.9 percent from P20.7 million a year earlier. The improvement came despite a softer top line, with consolidated revenues slipping 6.8 percent to P5.36 billion from P5.76 billion.
Management attributed the revenue dip largely to a planned slowdown in merchandise movement as the group upgraded branches and backend systems to prepare for its next growth phase. Sales of goods — which still accounted for 97.1 percent of total revenue — eased during the transition, but profitability held firm.
Gross profit rose 8.7 percent to P1.03 billion, fueled by higher margins and stronger other operating income. Trade supports, supplier rebates, and miscellaneous income drove other operating income up to P135.86 million from P79.71 million in the same period last year.
Cost discipline also supported earnings. Cost of sales fell in line with lower goods movement, dropping to P4.34 billion from P4.81 billion. Operating expenses, however, climbed 9 percent to P970.4 million as branch rents, depreciation and staff costs increased during the upgrade cycle.
Interest expense reached P27.7 million due to lease-related accounting under PFRS 16, while interest income rose nearly 64 percent on higher cash placements. Income tax expense increased 11.9 percent to P7.6 million on a higher taxable base.
MerryMart said its margin gains and expanding operating income reflect a sturdier foundation as it prepares for a multi-format expansion drive in 2026.
