Metro Retail Stores Group Inc. (MRSGI) of Cebu’s Gaisano family suffered a 19.6 percent drop in net income to P204.7 million in the first nine months of 2024 from P254.6 million in the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said the decline in earnings is due to increases in non-cash charges associated with the company’s expansion program.
“The results of our first nine months with sustained cash earnings reflect the Company’s resilience as we navigate the evolving retail landscape,” said MRSGI President and COO Manuel Alberto.
He added that “moving into the final quarter, we remain focused on adapting to market conditions, finding new strategic opportunities, and realigning our priorities to ensure we end the year on a more positive note and to gain momentum for 2025.”
MRSGI said it achieved a 4.2 percent growth in net sales for the first nine months of 2024 to P27.6 billion versus P26.5 billion in the same period of 2023.
This reflects modest but sustained contributions from the company’s existing network and its continued store expansion efforts.
Third-quarter net sales remained stable at P9.56 billion amid lingering inflationary pressures and cautious consumer spending.
Blended same-store sales for the nine-month period increased by 1.5 percent versus last year; driven by food retail which grew by 5.8 percent in the first nine months of 2024, while general merchandise dipped slightly by 1.2 percent.
Gross margin in the first nine months of 2024 was slightly lower at 21.1 percent from 21.7 percent a year ago as the company cleaned up ageing stocks.
However, MRSGI realized a decrease in operating expense to sales ratio from 20.5 percent last year to 20.2 percent in 2024 through tighter cost control and efficiency measures which included greater use of solar panels in key locations.
As a result, MRSGI’s cash earnings generated (earnings before interest, taxes, depreciation, and amortization or EBITDA) for the nine-month period remained relatively stable at P1.29 billion.
MRSGI recently opened five stores in the last two months in the provinces of Samar, Leyte, and Cebu – increasing the company’s network size to 69 stores, and registering encouraging sales trends in these new locations. The company also continued to grow its home retail footprint.
To date, Metro Retail operates a total of 69 branches across Luzon and the Visayas under the store formats Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart.
In line with its commitment to sustainable growth, MRSGI continues to aggressively expand its retail network. The company also provides online shopping services through shopmetro.ph, allowing customers to choose between home delivery or pick-up at the nearest Metro Store.