Robinsons Retail posts 28% drop in 2023 profit

GOKONGWEI-LED Robinsons Retail Holdings Inc. (RRHI) saw its unaudited net income decline by 27.7 percent to P4.7 billion in 2023 from P6.4 billion a year earlier.

Based on preliminary financial results released on Thursday, RRHI’s net income attributable to equity holders of the parent firm dropped 29.5 percent to P4.1 billion from P5.8 billion.

The decline was attributed to foreign exchange losses, a reversal of equitized earnings in 2022 to a loss in 2023 with the derecognition of Robinsons Bank’s net income following the merger with Bank of the Philippine Islands (BPI) and startup investment losses.

Full-year net sales, meanwhile, were said to have grown by 7.4 percent to P192.1 billion from P178.8 billion, complemented by same-store sales growth of 3.9 percent “despite inflationary pressures and a high base in 2022 with the economic reopening.”

Supermarkets and drugstores remained the listed retailer’s growth drivers last year.

In a statement, RRHI President and Chief Executive Officer Robina Gokongwei-Pe said efforts to expand market coverage and enhance store efficiency helped the company maintain its growth trajectory.

“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,” she added.

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

RRHI ended 2023 with a gross profit of P45.6 billion, up 7.9 percent from P42.3 billion a year earlier and driven by “assortment shifts and sustained penetration of private label brands.” This led to a 2.3-percent rise in operating income to P8.9 billion from P8.7 billion previously.

Core net income — which excludes foreign exchange earnings, interest income from bonds, equity earnings from associates and interest expense related to the BPI share acquisition — was virtually flat at P5.587 billion from P5.554 billion a year earlier.

RRHI said its BPI investment yielded a net positive carry last year, “significantly better than earlier expected, as borrowings related to the purchase of the BPI shares were reduced faster than planned.”

The company currently operates close to 2,400 stores, consisting of 349 supermarkets, 1,054 drugstores, 50 department stores, 230 DIY (do-ityourself) outlets, 408 convenience stores and 302 specialty stores along with more than 2,100 franchised outlets of The Generics Pharmacy.

RRHI shares rose by 65 centavos, or 1.84 percent, to P35.90 apiece on Thursday amid a 0.35-percent decline for the benchmark Philippine Stock Exchange index.