Metro Retail Stores Group, Inc. (MRSGI) reported an 80 percent jump in net income to P60.0 million for the first three months of 2023 from the P33.3 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said the improvement came from robust operating margins and solid revenues.
Total first quarter net sales declined of 2.4 percent to P8.3 billion from P8.5 billion for the first quarter of 2022, with comparable store sales also lower by 4.6 percent versus last year.
The decrease was due to bulk wholesale transactions in 2022 that had beefed up first-quarter sales last year.
Excluding these bulk transactions, sales for the first quarter this year posted a double-digit increase of 12.0 percent from 2022, of which General Merchandise business continued to thrive with a 14.1 percent growth.
MRSGI’s blended gross margin significantly improved by 290bps to 21.9 percent in the first quarter of 2023 from 19.0 percent in the same period a year ago.
This was mainly attributable to the higher share to business of general merchandise that generates better margins.
While the Company continued to implement efficiency initiatives, operating expenses increased by 13.8 percent amid higher rent and utilities expenses and the additional stores that opened in April last year.
This was partially offset by the increases in rental income and interest and other income.
As a result of the expansion in retail sales and higher gross profit margins, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter grew by 6.2 percent to P410.2 million from the same period last year.
“Last year’s results gave the Company more confidence to pursue stronger growth and financial performance this 2023,” said MRSGI President and COO Manuel Alberto.
He added that, “MRSGI will continue to seek new opportunities to serve our customers better and to create financial value for our stakeholders. MRSGI registered positive earnings in the first quarter and we plan to build on the momentum for the rest of the year.”
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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