Robinsons Retail ‘22 profit breaches pre-covid level

Robinsons Retail Holdings inc., the retail arm of the Gokongwei Group, said it posted a record attributable net income of P5.73 billion last year, some 26 percent higher than the previous year’s P4.52 billion.

The company said its income last year had already eclipsed the prepandemic level by 41 percent.

earnings per share rose by 30 percent for the full year to P3.85 per share, supported by the company’s ongoing stock buyback program.

Core earnings, or its net income excluding foreign exchange, interest income from bonds, equitized earnings from Robinsons Bank, among others, accelerated by 39 percent to P5.3 billion, also a record high.

Revenues for the 12-month period rose 16 percent to P178.82 billion from the previous year’s P153.32 billion.

This was driven by same store sales growth of 11.8 percent as well as new store openings.

“In 2022, our businesses directly benefitted from the economy’s gradual return to normalcy, including back to face-to-face classes in schools, increased travel and tourism, and the first normal holiday season in two years,” the company said.

The surge in profitability is also due to the contributions from all business segments coming from category mix improvements and operating efficiencies.

“Building on the momentum last year, our company will continue to take advantage of the economy’s return to normal. We will focus on improving store efficiency and increasing market coverage with more stores in the pipeline for 2023,” Robina Gokongwei Pe, the company’s president and CEO, said.

Changes in category mix and economies of scale enabled the company to grow its gross profit faster than sales, rising by almost 20 percent for the full year to P42.2 billion.

The company announced last month that it would purchase a minority stake in Bank of the Philippine Islands.

The company said its board has approved the acquisition of the 4.4-percent effective equity interest of Arran Investment Pte. Ltd., an affiliate of GIC Private Ltd., in BPI.

Through redeemable preferred shares Arran currently owns 21.9 percent of Liontide holdings Inc., which in turn has a 20-percent equity interest in BPI.

Robinsons Retail will eventually own 6.8 percent in BPI, as the firm already has a 2.4-percent stake after the lender approved a merger with Robinsons Bank last year.