Robinsons Retail says TRAIN helped boost sales

ROBINSONS Retail Holdings, Inc. (RRHI) posted a 9.6% increase in attributable profit during the April to June period of 2018, following higher samestore sales and the performance of new stores.

The Gokongwei-led retail operator said in a disclosure to the stock exchange on Monday that net income attributable to the parent stood at P1.41 billion during the second quarter, higher than the P1.29 billion in the same period a year ago.

The company’s net sales also improved by 13.5% to P31.5 billion for the April to June period.

On a six-month basis, RRHI’s attributable profit climbed 14.9% to P2.62 billion as revenues increased by 13% to P60.46 billion. Same-store sales growth was recorded at 6.5%.

“Higher consumption driven by increased take-home pay from the implementation of the TRAIN law was sustained through the first half of the year, with all formats registering robust same-store sales growth,” the company said.

Under the Tax Reform Acceleration and Inclusion (TRAIN) law, non-minimum wage earners receiving a monthly wage of P21,000 and below are exempted from paying the personal income tax. Those earning above the amount also received significant tax cuts.

The supermarket business contributed 46.1% to RRHI’s consolidated net sales during the period, with same-store sales growth at 8.6%. The specialty stores unit posted same-store sales growth of 9%, DIY with 5.6%, convenience stores with 4.3%, drugstores with 3%, and department stores with 1.1%.

RRHI had a total of 1,742 stores by the end of the first half of the year, excluding the franchised branches of The Generics Pharmacy. With this, the company increased its gross floor area by 10.3% to around 1.18 million sq.m.

The company will continue its store expansion in the second half of 2018, as it noted that 75% of the year’s scheduled openings are slated for this period.

RRHI’s portfolio includes Handyman Do It Best, True Value, Toys R Us, Ministop, Daiso Japan, Costa Coffee, Savers Appliances, and South Star Drug.

RRHI President and Chief Operating Officer Robina Y. Gokongwei-Pe earlier said that the company plans to spend P3-3.5 billion in capital expenditures this year, mainly to expand its stores. This includes 13 supermarkets, three department stores, 10 to 15 Do-it-yourself stores, 20 to 30 convenience stores, 25 to 30 South Star Drug stores, and 30 to 35 specialty stores.

The company is opening Pet Lovers Center in Robinsons Galleria by the third quarter of the year, as well as 100 new franchised The Generics Pharmacy stores.

RRHI noted that it has already spent P1.9 billion of its capex budget in the first half.

Shares in RRHI closed flat at P88.45 apiece at the Philippine Stock Exchange on Monday. —