Metro retail nets P273M in first nine months 2016

CEBU, Philippines - Cebu-based Metro Retail Stores reported a net income of P273 million for the nine months of 2016.

In a disclosure to the Philippine Stock Exchange yesterday, the Gaisano-led retailer said it posted P23.7 billion in net sales during the nine-month period, or a 6.1 percent  all-stores sales growth over last year.

Same-stores sales also grew by 2.9 percent over the same nine-month period last year.

Same-store profitability grew compared to the same period last year as it continued with its expense control and rationalization initiatives, the retailer said.

However, the company noted that net income for all stores dipped by P70 million versus the prior year due in part to operating losses in the third quarter associated with the acquisition of two pre-existing department stores in Metro Manila.

Going forward, the firm said it will continue to focus on improving sales and cost-efficiencies to drive profitability.

“Store-level profitability will be our priority in subsequent months as we strive to achieve our targets in newly-opened stores and new markets,” Chairman and CEO Frank S. Gaisano said.

The company also reported a significantly lower inventory level and stronger cash reserves of P2.878 billion, and remains debt-free, adding that it remains financially robust to pursue its expansion and store enhancement plans.

The Cebu retailer is on track with its five-year plan to double its gross floor area to 800,000 square meters. Currently, the company has already secured approximately 40 percent of that target, or 160,000 square meters, which will open in the next two years.

It has also entered into a partnership with Ayala Land for the establishment of new stores in four new Ayala commercial developments in the key cities of Bacolod, Iloilo, Cebu and Metro Manila.

Shares of Metro Retail closed at P4.15 apiece yesterday, down 6.74 percent.

Metro is a subsidiary of Vicsal Group which owns Wealth Bank, jointly owned by Woori Bank, Korea’s second largest bank; Taft Properties; and HT Land, a joint venture between Taft and HongKong Land.

The Cebu retailer currently operates 49 stores in supermarket, department store and hypermarket formats. (FREEMAN)