The Gokongwei Group’s Robinsons Retail Holdings Inc. posted a 29.5 percent drop in attributable net income due to foreign exchange losses and the impact of the merger of Robinsons Bank with the Bank of the Philippine Islands (BPI).

In a disclosure to the Philippine Stock Exchange (PSE), the firm said losses from start-up investments also contributed the fall in its attributable profits to P4.13 billion last year from P5.85 billion in 2022. 

RRHI reported that there was a reversal of foreign exchange gains in 2022 to a loss in 2023 with the appreciation of the peso vis-à-vis the US dollar and the reversal of the equitized earnings in 2022 to a loss in 2023 with the derecognition of Robinsons Bank’s net income under equitized earnings following the merger with BPI.

Net sales improved 7.4 percent to P192.1 billion in 2023 from P178.82 billion in 2022 on same store sales growth (SSSG) of 3.9 percent despite inflationary pressures and a high base in 2022 with the economic reopening. Supermarkets and drugstores were the company’s main growth drivers.

“The strategic initiatives we put in place in 2023 such as increasing market coverage and improving store efficiency proved instrumental in maintaining our growth trajectory despite the challenging operating environment,” said RRHI President and CEO Robina Gokongwei-Pe. 

Gross profit came in at P45.6 billion in 2023, higher by 7.9 percent year-on-year and growing faster than revenues, driven by assortment shifts and sustained penetration of private label brands.

Operating income grew by 2.3 percent year-on-year to P8.9 billion from P8.7 billion.

Core net earnings registered flattish growth at 0.6 percent year-on-year to P5.59 billion from P5.55 billion. 

Core net earnings exclude foreign exchange losses, interest income from bonds, equity in earnings from associates, interest expense related to the BPI shares acquisition financing, BPI cash dividends, and others.

Robinsons Retail’s investment in BPI yielded a net positive carry in 2023, significantly better than earlier expected as borrowings related to the purchase of the BPI shares were reduced faster than planned.

“As we move forward in 2024, we are optimistic that we can capture the expected recovery in consumer confidence, particularly as inflation pressures begin to subside,” said Gokongwei-Pe. 

She added that, “we remain committed to expanding our business prudently, balancing the needs of our retail customers with the interests of our diverse stakeholders.”

As of end December 2023, Robinsons Retail operated a total of 2,393 stores consisting of 349 supermarkets, 1,054 drugstores, 50 department stores, 230 DIY stores, 408 convenience stores, and 302 specialty stores. It also has over 2,100 franchised stores of TGP.