Metro Retail incurs P126.5 million loss in Q1

MANILA, Philippines — Metro Retail Stores Group Inc. (MRSGI), the listed Cebu-based retailer, reported a net loss of P126.47 million in the first quarter, a reversal of the P7.98 million income posted a year ago.

This was due to “lowered customer traffic due to quarantine protocols and continued customer prioritization of purchases to essential goods.”

MRSGI president and COO Manuel Alberto said despite the challenges and uncertainties brought about by the pandemic, there are opportunities for growth that the company intends to tap.

“With the right strategy, people and partnerships, we are focusing on long-term sustainable recovery and growth,” Alberto said.

MRSGI said while the first quarter retail season is typically lean following peak consumer spending in December, the net loss was primarily attributed to the 18.9 percent contraction in revenue to P6.95 billion.

In terms of specific businesses, MRSGI’s total food retail business declined 14.7 percent while general merchandise business decreased 30.2 percent year-on-year.

Blended same store sales dipped 21.4 percent over the same period last year.

EBITDA or earnings before interest, taxes, and depreciation and amortization as of end-March 31, 2021 still stood at a positive position of P236.74 million while the company’s balance sheet remained solid with cash reserves of P960.35 million. MRSGI said it would pursue a multi-pronged growth plan that aims to further grow its business through the expansion of its e-commerce program, structure MRSGI as an agile organization, and develop new channels, among others.

After closing 2020 with 56 stores, MRSGI opened three more stores in the provinces of Cebu and Leyte. It likewise fully re-opened its flagship Metro Ayala Center Cebu – Department Store; bringing its current store network to 60.

Next month, the company is set to open another store located in Bacolod.

Article and Photo originally posted by Philippine Star last May 16, 2021 12:00am and written by Iris Gonzales.