CEBU, Philippines — Publicly-listed Metro Retail Stores Group, Inc. (MRSGI) posted a 4.2 percent growth for the first nine months of 2024 with P27.6 billion net sales compared to the P26.5 billion in 2023.
The Cebu-based retail giant recorded P9.56 billion net sales in third quarter this year despite lingering inflationary pressures and cautious consumer spending. Blended same-store sales for the nine-month period increased by 1.5 percent compared last year; driven by food retail which grew by 5.8 percent in the first nine months of 2024, while general merchandise dipped slightly by 1.2 percent.
Gross margin in the first nine months of 2024 was slightly lower at 21.1 percent from 21.7 percent a year ago as the company cleaned up ageing stocks.
However, the company realized a decrease in operating expense to sales ratio from 20.5 percent last year to 20.2 percent in 2024 through tighter cost control and efficiency measures which included greater use of solar panels in key locations.
As a result, MRSGI’s cash earnings generated (earnings before interest, taxes, depreciation, and amortization or EBITDA) for the nine-month period remained relatively stable at P1.29 billion.
Due to increases in non-cash charges associated with the company’s expansion program, net income in the first nine months of 2024 declined by 19.6 percent to P204.7 million from P254.6 million in the prior-year period.
Over the last two months the MRSGI opened five stores in the provinces of Samar, Leyte, and Cebu – increasing the company’s network size to 69 stores, and registering encouraging sales trends in these new locations. The company also continued to grow its home retail footprint.
“The results of our first nine months with sustained cash earnings reflect the Company’s resilience as we navigate the evolving retail landscape,” said MRSGI President and chief operating officer (COO) Manuel Alberto.
“Moving into the final quarter, we remain focused on adapting to market conditions, finding new strategic opportunities, and realigning our priorities to ensure we end the year on a more positive note and to gain momentum for 2025,” Alberto added.
To date, Metro Retail operates a total of 69 branches across Luzon and the Visayas under the store formats Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart.