Metro Retail income up 23% in 9 months

MANILA, Philippines – The Gaisano-led Metro Retail Stores Group Inc. (MRSGI) reported a 23.5 percent jump in net income in the nine months to September to P344 million on higher sales and reduced operating expenses.

Strong same store sales growth of 9.5 percent, led by the hypermarket segment boosted the company’s net sales.  Also contributing to the increase is growth in revenues of new stores.

During the nine-month period, the group added two supermarkets and four hypermarkets.

“Our third quarter results reflect our customers and partners’ unwavering support for MRSGI,” company chairman and CEO Frank Gaisano said.

“It also underscores our confidence in the company’s capacity for expansion and widening its customer base, as the market continues to believe in the MRSGI retail experience. We are particularly encouraged by the performance of our stores in the Visayas region,” Gaisano added.

As of Nov. 24, the Metro Group had 46 stores nationwide, composed of 24 supermarkets, 12 hypermarkets and 10 department stores.

The company debuted on the stock market last month to raise P3.6 billion.

MRSGI said its bank debt level remained very low at P950 million even as proceeds from the public listing are expected to add around P3.4 billion by yearend to the company’s networth, which stood at P2.7 billion as of the end of September.

The retail arm of Vicsal Development Corp. plans to ramp up expansion with the establishment of around 60 to 70 stores within the next two years.

“Taking MRSGI public was a strategic transformational process that enables us to accelerate growth, improve margins and operating efficiency, strengthen further our balance sheet, and consequently create value for our investors,” Gaisano said.