Robinsons Retail buys Tarlac-based supermart chain

MANILA, Philippines - The multi-format retail arm of the Gokongwei family has purchased Tarlac-based EZ Mart and EZ Supermarket chain, marking its first acquisition since being listed in the local bourse.

The acquisition will increase Robinsons Retail Holdings Inc.’s presence in Central and Northern Luzon as it reported a hefty income growth in January to September.

“Robinsons Retail, through wholly-owned subsidiary Robinsons Supermarket Corp., agreed to acquire 100 percent of Eurogrocer Corp. for a total consideration of P290 million subject to the satisfaction of conditions mutually agreed upon by the parties,” the company said.

Eurogrocer operates six EZ Mart and EZ Supermarket stores in Tarlac.

“The acquisition allows Robinsons Retail to expand its presence in the province of Tarlac and nearby provinces in the Central and Norther Luzon,” the multi-format retailer said.

As of end-Sept., its store network hit 982 from 912 in the same period last year, driven by the continued store rollouts and acquisitions.

Robinsons Retail is the Philippines’ second largest retail operating under nine formats: Robinsons Supermarket, Robinsons Department Store, Ministop, South Star Drug, Handyman Do it Best, True Value, Howards Storage World, Robinsons Appliances, Toys R Us, Saizen and a selection of international fashion apparel.

In a regulatory filing, the Gokongwei-led firm reported a consolidated net income of P2.04 billion in the nine-month period, more than double the P894.5 million last year.

“The increase was largely due to increased income from operations as a result of new store openings, as well as the consolidation of South Star Drug,” Robinsons Retail said, adding that same store sales picked up 2.1 percent in the nine-month period.

Its consolidated net sales jumped nearly 20 percent to P47.17 billion from P39.43 billion a year ago. In contrast, operating expenses rose at a slower pace of 11.4 percent to P8.3 billion from P7.45 billion due to higher selling expenses.

Robinsons Retail attributed the double-digit growth to the increase in sales volume as a result of the net addition of 111 stores from end-September 2012, and the acquisition of South Star Drug and Eurogrocer.

“Royalty, rent and other income has expanded 23.3 percent from P786 million from P969 million mainly due to higher royalty fee income of the convenience store segment,” Robinsons Retail said.

Other income and charged sank 43.2 percent to P175 million from P308 million, with last year’s income including the P130-million gain on sale of shares in JG Summit Holdings Inc.