MRSGI earnings lower but continues Visayas expansion
Metro Retail Stores Group, Inc. (MRSGI) of Cebu’s Gaisano family reported a 32.6 percent drop in net income to ₱618 million last year from the ₱917.3 million earned in 2022.
In a disclosure to the Philippine Stock Exchange, the firm said that, in terms of core net income which excludes one-time gains such as accounting adjustment on leases and insurance claims in 2022, its earnings were down only 18.4 percent versus the prior year’s recurring profit of ₱757.3 million.
Despite the lingering inflation pressures affecting consumer spending and a high base in 2022, MRSGI sustained its sales level at ₱38.3 billion in 2023, a 0.4 percent growth from last year’s ₱38.1 billion. Comparable same-store sales growth ended flattish with a 0.8 percent dip, largely owing to a decline in wholesale business contribution. By business, general merchandise maintained its positive momentum after strong growth in 2022, increasing by 4.7 percent driven by apparel, electronics, appliances, and travel gear.
Food retail slightly declined by 1.2 percent due to bulk wholesale business scaling down versus the previous year. Excluding bulk transactions, food retail sales continued its expansion at 6.2 percent yearon-year. MRSGI recorded an improvement in its blended gross margin from 21.1 percent in 2022 to 21.6 percent in 2023. Operating expenses increased by 7.9 percent largely due to rent escalations and higher manpower expenses related to new stores and government mandated minimum wage increases, which lowered the Company’s EBITDA to ₱2.2 billion in 2023 from ₱2.7 billion in the prior year.
“Even with the challenged outturn, MRSGI reiterates its commitment of offering improved services to customers and better returns to stakeholders underpinned by its strategic initiatives to bolster growth and stability in 2024 and onwards,” said MRSGI President and COO Manuel Alberto.
The Company’s expansion continued with the debut of its neighborhood minimart Metro Value Mart in Gen. Trias, Cavite and opening of two new Metro Supermarkets in Lapu-lapu City, Cebu and Alangalang, Leyte.
Simultaneously, MRSGI started undertaking renovations in its flagship stores to modernize the look and feel of its stores and refresh the merchandising brand aligned with the evolving shopper’s needs.
MRSGI recently made strides in its expansion efforts in the Visayas with the groundbreaking for four new supermarket stores in Cebu and Leyte, marking the beginning of increased accessibility and convenience for these communities.
The firm said its commitment to serving diverse communities in Cebu is reinforced with the addition of Metro Supermarket in Barangay Tayud, alongside Metro Value Mart locations in Barangay Poblacion and Barangay Tangke.