Robinsons Retail net income down 29.5%

GOKONGWEI-LED Robinsons Retail Holdings, Inc. (RRHI) reported a 29.5% decline in its attributable net income in 2023 to P4.13 billion from P5.85 billion.

The attributable net income in 2023 declined due to the “reversal of foreign exchange gains in 2022 to a loss in 2023, following the appreciation of the peso vis-à-vis the US dollar,” the company said in a regulatory filing.

“Also 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 the Bank of the Philippine Islands, and losses from startup investments,” it added.

RRHI’s full-year net sales improved by 7.4% to P192.1 billion, led by a 3.9% growth in same-store sales.

“[The growth is] despite inflationary pressures and a high base in 2022 with the economic reopening. Supermarkets and drugstores were the company’s main growth drivers,” it said.

The company’s gross profit rose by 7.9% to P45.6 billion led by “assortment shifts and sustained penetration of private label brands” while its core net earnings grew by 0.6% to P5.6 billion.

“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,” RRHI President and Chief Executive Officer Robina Gokongwei-Pe said.

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

As of end-2023, RRHI operates 2,393 stores. These consist of 349 supermarkets, 1,054 drugstores, 50 department stores, 230 DIY stores, 408 convenience stores, and 302 specialty stores. The company also has more than 2,100 franchised stores of The Generics Pharmacy.

Shares of RRHI rose by 65 centavos or 1.84% to P35.90 apiece on Thursday.