MRSGI profit drops on higher opex

Gaisano-led Metro Retail Stores Group Inc. (MRSGI) posted a 36.5 percent drop in net income to ₱254.6 million in the first nine months of 2023 from the ₱400.7 million earned in the same period last year. In a disclosure to the Philippine Stock Exchange (PSE), the firm said profit decline is primarily due to higher operating expenses partially offset by the improvement in gross margin. “Our last three quarterly results showed an improving trend quarter-on-quarter. Before the year concludes, we anticipate a lift in our performance as the holiday season draws in more robust consumer spending,” said MRSGI President and Chief Operating Officer Manuel C. Alberto. He added that, “we are ready to serve early Christmas shoppers with a much wider selection of quality products at competitive prices and an easy and friendly shopping experience across our physical stores and online channels.”

MRSGI posted a ₱117.7 million net income in the third quarter. The Company generated a 4.7 percent growth in net sales for the third quarter, supported by better sales from existing stores and incremental sales from newly opened stores. By business, general merchandise increased by 4.8 percent for the quarter and 6.1 percent over nine months, benefiting from back-toschool and increased travel activities. Similarly, food retail expanded by 4.5 percent for the quarter mainly from higher grocery consumption and improved marketing and store initiatives. For the nine-month period, food retail was slightly lower by 2.2 percent due to reduced wholesale transactions in 2023. Total net sales over the nine months reached ₱26.5 billion, which was just a shade lower (0.04 percent) versus the prior year. Excluding bulk wholesale transactions, total net sales for the first nine months of 2023 increased by 5.2 percent year-on-year. (James A.

Loyola)