CEBU, Philippines — Cebu-based Metro Retail Stores Group saw its first half net profit down to P344 million as its supermarket and department store in Ayala Center Cebu was damaged by fire early this year, the company’s CEO however, says retail sales performance have remained strong.
In a regulatory filing to the Philippine Stock Exchange yesterday, the Gaisano-led retailer said it posted a 9.5 percent increase in retail sales in the first half of 2018 “on the back of a strong performance” of its current store network.
However, its P344 million first semester profit was down 14.21 percent from P401 million it earned in the same period in 2017.
“The year may have started on a challenging note, but our retail sales performance remains strong and this has allowed us to move forward with greater stability and confidence,” said company chairman and CEO Frank Gaisano.
“We started the re-building of our flagship store in Cebu, and we thank our loyal customers for their overwhelming patronage of our pop-up stores in the same mall (Ayala Center Cebu). Rest assured that we are doing our best to accelerate the first phase of the store’s re-launch within the year,” he said.
Shares of the company closed at P2.81 apiece, down 2.09 percent, during the trading recess noon yesterday.
In the second quarter, net profit rose to P254 million as same store sales grew 4.6 percent, the highest in nine quarters.
The listed retailer also continued to record cost efficiencies.
“We are committed more than ever to achieving a stronger brand presence for Metro with our continued investments in the provinces and other strategic growth areas,” Gaisano said.
“More consumers will benefit from Metro as we cement our position as one of the leading and preferred retailers in the country.”
The company has expanded in the National Capital Region (NCR) and Eastern and Western Visayas, with the recent opening of its store in Ayala Malls Feliz in Pasig City; the recent groundbreaking of its hypermarket in Baybay, Leyte; and the opening of its department store and supermarket in Bacolod within the year.
Metro Retail, the largest retailer in Visayas, had targeted to double its 2015 gross floor area by 2020, with plans of beefing up its store network in Visayas and in Luzon.
The firm now operates 51 stores in Central, Western and Eastern Visayas as well as in Central Luzon, Metro Manila and South Luzon, with three store formats comprising department store, supermarket and hypermarket. (FREEMAN)