Metro Retail Stores Group Inc. (MRSGI) grew first-half net income by 45 percent to P212.2 million, as store expansion, renovations, and tighter product selection helped lift profitability despite persistent cost pressures.
Consolidated net sales rose 3.1 percent year-on-year to P19.36 billion, while same-store sales edged up 0.2 percent. Food retail led the growth, with sales increasing 3.8 percent, while general merchandise rose 1.2 percent.
The stronger bottom line was helped by an improvement in gross margin to 22.6 percent from 21.8 percent a year earlier, reflecting a better sales mix across food and general merchandise. Operating expenses increased 4.8 percent, partly due to inflationary costs and expenses associated with new stores.
Consequently, operating income climbed 22.8 percent to P339.4 million.
The retailer’s performance suggests that its growth strategy is beginning to show more clearly in earnings. Rather than relying solely on sales growth, MRSGI is using store upgrades, assortment changes, and cost discipline to squeeze more profit from each peso of revenue.
The company is also continuing to build its regional footprint, particularly in the Visayas. It added stores in Naval, Biliran, and Lapu-Lapu City and Mandaue City in Cebu, bringing its network to 84 branches.
MRSGI is simultaneously renovating larger stores and hypermarkets to improve the customer experience. In July, it relaunched Metro Colon, its pioneer store in downtown Cebu, combining a modernized format with a nod to the brand’s roots.
“Our strong performance in the first half of 2026 demonstrates the effectiveness of our strategic growth initiatives and the resilience of our core business,” President and COO Joselito Orense said.
The company operates Metro Supermarket, Metro Department Store, Super Metro Hypermarket, Metro Value Mart, and Metro Home Improvement and Lifestyle formats across Luzon and the Visayas.
With expansion continuing alongside renovations, MRSGI is betting that a bigger network, better stores, and sharper assortments can translate into more than just foot traffic, but sustainable earnings growth.
