Robinsons Retail Holdings, Inc. (RRHI), a member of the Gokongwei Group, reported a 54.5 percent drop in attributable net income to P537 million in the first quarter of the year. In a disclosure to the Philippine Stock Exchange, the firm said its bottomline was weighed down by higher interest expense resulting from the acquisition financing of the Bank of the Philippine Islands (BPI) shares earlier this year, foreign exchange losses, and lower earnings from associates.

RRHI President and CEO Robina Gokongwei-Pe

“The higher interest expense for the purchase of the BPI shares should be offset by the expected cash dividends from BPI when declared,” RRHI noted. Core net income (net income excluding foreign exchange gains or losses, interest income from bonds, equity in earnings from associates, interest expense related to the BPI shares, and others) improved by 20.5 percent to P1.1 billion in the first quarter of 2023 on the back of the company’s solid operating performance. Consolidated net sales grew 13.1 percent year-on-year to P44.6 billion in the first quarter of 2023 on the back of healthy blended same store sales growth (SSSG) of 9.2 percent augmented by fresh revenue contributions from new stores. The supermarkets, drugstores, department stores, and convenience stores segments all delivered double-digit revenue growth for the period. The reopening theme continues to work in the company’s favor while consumer demand – especially from the middle-class target market has been largely resilient. The business also continued to see its gross profit and operating income accelerate relative to the topline, growing by 15.9 percent to P10.5 billion and 14.8 percent to P1.8 billion, respectively, in the first quarter. This was aided by improvements in category mix, economies of scale, better operating leverage, and various cost saving initiatives. “Our dynamic growth strategies and multi-format business model has enabled us to capture the resilience in consumer spending,” said RRHI President and CEO Robina Gokongwei Pe. She added that, “As such, we will continue to open stores in underserved areas, improve efficiency within our stores through assortment changes and streamlining expenses, and capitalize on our growing digital presence to reach more shoppers.”