Robinsons Retail Holdings Inc. reported a modest four percent increase in its net earnings to P3.8 billion in the first nine months of 2023 from P3.6 billion in the same period in 2022 as the company remains resilient amid the impact of inflation on consumer spending. 

In a disclosure to the Philippine Stock Exchange (PSE), the company also recorded an 8.7 percent increase in sales to P138 billion in the nine-month period this year compared to P127 billion last year. 

The company noted that its net earnings excluded its foreign exchange gains and losses, interest income from bonds, equity in earnings from associates, interest expense related to the Bank of the Philippines (BPI) acquisition financing, and BPI cash dividends, among others. 

Meanwhile, the rise in sales was attributed to five percent blended same store sales growth (SSSG) and other store expansion activities. Supermarkets and drugstores were the primary drivers of revenue growth in the first nine months, accounting for 75 percent of the company's revenues. 

Its department store sector also saw gains in the said period because of back-to-school season and out-of-home activities. 

Gross profit also grew 9.4 percent to P32.9 billion in the first nine months of 2023 from P30 billion in 2022 due to better category mix and integration of private label brands. 

Operating income also rose by 3.7 percent to P6.1 billion in the said period this year from P5.9 billion last year. 

The company’s consolidated gross profit continued to grow faster than revenues, increasing by 9.4 percent year-on-year to P32.9 billion in the January-September period this year. This was enabled by improvements in category mix and higher penetration of private label brands. 

Meanwhile, operating income grew by 3.7 percent year-on-year to P6.1 billion in nine months this year. 

However, net income attributed to equity holders of the parent company dropped by 41.4 percent to P2.6 billion in the first to third quarter of 2023 compared to P4.4 billion in 2022 due to "equitized losses from minority startup investments which continue to ramp up, the derecognition of Robinsons Bank’s net income under equitized earnings following the ongoing merger with BPI and interest expense from the acquisition financing of the BPI shares that were purchased earlier this year, and the absence of cash dividends from BPI in the third quarter of 2023."

The firm noted that the expected cash dividends to be paid by BPI in this year's fourth quarter should cover the "acquisition-related financing interest expense for the purchase of BPI shares." 

Robinsons Retail President and CEO Robina Gokongwei-Pe said the company's "defensible business model has enabled us to continue growing and remain relevant among Filipino consumers."

"This is notwithstanding near-term macroeconomic challenges, particularly the impact of inflation on consumer sentiment. These headwinds are temporary, in our view, and we thus remain positive on the long-term potential of the domestic retail industry given the Philippines’ attractive demographics," she noted. 

Gokongwei-Pe remarked that Robinsons Retail "will continue to invest with a long-term view and in a sustainable manner – core strategies that we firmly believe will translate to greater stakeholder value."