Robinsons buys into BeautyMNL operator

ROBINSONS Retail Holdings, Inc. (RRHI) is joining the roster of firms taking a slice in the e-commerce industry by acquiring a stake in the operator of online cosmetics marketplace BeautyMNL.

In a disclosure to the stock exchange on Wednesday, the Gokongwei-led firm said it has purchased a 20% stake in Taste Central Curators, Inc. The transaction involves one million shares in Taste Central.

RRHI said the acquisition is expected “to further expand and strengthen (the company’s) presence in the beauty format and e-commerce space.”

The company did not disclose the acquisition cost, but noted that the amount was less than 10% of RRHI’s stockholders’ equity by the end of September. RRHI’s stockholders’ equity stood at P53.9 billion by the end of this period.

RRHI described BeautyMNL as an industry leader in the local beauty e-commerce space. It operates as both an online magazine that offers beauty advice and as a marketplace.

This is the second time the Gokongwei group has invested in e-commerce, after RRHI’s parent JG Summit Holdings, Inc. participated in the $550-million funding program for Singapore-based Internet platform company Sea Ltd. in May this year.

Sea, which is present in countries across Southeast Asia, is behind Garena Interactive Holding, Ltd., Shopee, and digital financial services firm Airpay.

RRHI joins other companies that have strengthened their presence online.

The Ayala Group in February this year acquired a 49% stake in BF Jade E-Service Philippines, the owner and operator of Zalora Philippines. Zalora Philippines is the country’s largest online fashion marketplace where customers can choose over 120,000 products across more than 1,000 brands.

The SM group meanwhile is adopting a “clicks-to-bricks” strategy that would drive online shoppers to its physical stores.

RRHI ended September with a total of 1,658 stores, comprising 146 supermarkets, 46 department stores, 185 do-it-yourself (DIY) stores, 489 convenience stores, 467 drugstores, and 325 specialty stores.

The company generated a net income attributable to the parent of P3.49 billion in the nine months ending September, higher by 5.8% year on year. This comes on the back of a 10% increase in net sales to P81.18 billion for the period.

Shares in RRHI lost P2.30 or 2.45% to close at P91.70 apiece at the stock exchange on Wednesday. —