New department stores boost Metro Retail profit

Details: Category: Press Room; Created: 15 August 2016

Posted on August 09, 2016

METRO RETAIL Stores Group, Inc. (MRSGI) saw a 16% rise in net income in the second quarter, as the addition of three stores, including two department stores acquired from the Ayala Land, Inc.-SSI Group joint venture boosted sales and rental income.

In a regulatory filing, the Gaisano-led retail giant said its net income jumped to P209 million in the April to June period, from P180 million a year ago.

This brought the company’s earnings to P262 million for the six months ended June 30, 24% higher than the P211.3 million during the same period a year ago.

Net sales went up by 6.6% to P8.34 billion in the second quarter, bringing the six-month tally to P15.91 billion, 8% higher from a year ago.

“The increase in net sales was largely due to increase in sales as a result of opening a new store during the second half of 2015 and three new stores in 2016,” MRSGI said. As of end-June, MRSGI had 49 stores versus 45 stores a year ago.

However, same-store sales growth slowed to 5% during the January to June period, compared to the nearly 10% same-store sales growth during the same period in 2015.

“Despite challenging conditions, we are encouraged by our bottom line and same-store sales growth led by our hypermarket format. This was achieved by our familiarity with the Visayas region and the markets that we serve,” MRSGI Chairman and Chief Executive Officer Frank S. Gaisano was quoted as saying in a statement.

The largest retailer in the Visayas saw a 106% increase in rental income to P138.6 million in the first half, as the addition of new stores led to an increase in net leasable space.

The company added around 30,000 square meters of gross floor area in the first six months of 2016, including a hypermarket in Eastern Visayas and two former Wellworth department stores in UP Town Center and Fairview Terraces in Quezon City. -- Monica M. Hernandez

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METRO RETAIL Stores Group, Inc. (MRSGI) saw a 16% rise in net income in the second quarter, as the addition of three stores, including two department stores acquired from the Ayala Land, Inc.-SSI Group joint venture boosted sales and rental income.