Robinsons Retail posts flat Q3 income

ROBINSONS Retail Holdings, Inc. (RRHI) recorded flat earnings for the third quarter of 2018, amid a double-digit growth in sales during the period.

In a disclosure to the stock exchange on Monday, the Gokongwei-led retail operator said net income attributable to equity holders of the parent stood at P1.21 billion for the July to September period, just 0.1% higher than what it generated in the same period a year ago.

The company’s net sales delivered a 13.2% increase to P31.36 billion for the quarter, while operating income rose by 7.9% to P1.63 billion.

On a nine-month basis, RRHI’s attributable profit went up by 9.8% to P3.83 billion, following a 10.2% increase in operating income to P4.66 billion during the period.

The company also improved its net sales by 13.1% to P91.82 billion. RRHI’s supermarket segment accounted for bulk of the consolidated net sales at 46.5%, after recording a same-store sales growth (SSSG) of 8.6%.

It noted that SSSG for the entire group was above target at 6.6% by end-September. The specialty stores segment booked an SSSG of 7.8%, do-it-yourself (DIY) segment at 6.1%, convenience stores at 4.5%, drugstores at 2.9%, and department stores at 2.4%.

SSSG measures the growth of a company’s existing stores, and serves as a guide for investors to make sure that the firm’s growth is not solely driven by the opening of new stores.

RRHI attributed the sales growth to the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which in part increased Filipinos’ disposable income.

“High consumption was sustained through the first nine months of 2018, coming from the rise in take-home pay among salaried workers with the TRAIN Law’s implementation at the beginning of the year,” RRHI said.

The company ended the first nine months of the year with a total of 1,778 stores, excluding the franchised branches of The Generics Pharmacy. Of this, 158 were supermarkets, 51 were department stores, 206 were DIY stores, 496 were convenience stores, 499 were drugstores, and 368 were specialty stores.

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

The company’s footprint spanned around 1.2 million square meters by end-September, nine percent higher year-on-year.

Shares in RRHI jumped 0.64% or 50 centavos to close at P78.50 each at the stock exchange on Monday. —