Metro Retail Stores Group, Inc. (MRSGI) reported a banner year in 2022 with sales and net income exceeding pre-pandemic levels and EBITDA registering a two-fold growth.
In a disclosure to the Philippine Stock Exchange, the firm said its posted a turnaround in 2022 with a net income of P917.3 million from a P318.1 million pandemic-driven loss in 2021 as economic activity picked up in the country.
It added that the 2022 net income also surpassed the pre-pandemic earnings by 18.3 percent from P775.6 million in 2019.
MRSGI said it also benefitted from the robust consumer spending during the holiday season with record sales in the fourth quarter bringing the annual sales to P38.1 billion in 2022, 22.1 percent higher than the P31.2 billion in 2021.
The firm’s store traffic continued to recover resulting in a 19.2 percent blended same-store sales growth in 2022.
“The year 2022 was indeed a breakthrough year for Metro Retail… MRSGI was able to display its resilience – registering consistent encouraging performance across all quarters and ultimately closing the year with positive results,” said MRSGI President Manuel Alberto.
He added that, “MRSGI marked this year as its leap from the net loss incurred during the pandemic to delivering a buoyant financial outcome. And we look forward to sustaining this growth in the coming years.”
Amid the price pressures and supply chain challenges, the full reopening of businesses and improvement in labor market conditions primarily drove the growth in consumer confidence since the pandemic.
Hence, the Company’s general merchandise business climbed by 54.3 percent from the same period last year while food retail was up by 13.1 percent.
With the increased share to business of general merchandise offering better margins, MRSGI posted an improvement of 230 basis points in its blended gross margin from 18.8 percent in 2021 to 21.1 percent in 2022.
Underpinned by the improved gross margin and operating efficiency, MRSGI was able to double its earnings before interest, taxes, depreciation, and amortization (EBITDA) to P2.7 billion in 2022 compared to P1.2 billion in 2021.
In 2022, the Company added two new supermarkets, ending the year at 62 stores. MRSGI broke ground and started the construction of its mega distribution center in Sta. Rosa, Laguna in order to support its current and future network.
The Company also launched several new projects in its store expansion pipeline in strategic areas across Luzon and Visayas.