RRHI first quarter core earnings rise to P1.2 B

Robinsons Retail Holdings, Inc. (RRHI), a member of the Gokongwei Group, reported an 8.5 percent growth in core net earnings to P1.2 billion in the first quarter of 2024 versus the same period last year. 

In a disclosure to the Philippine Stock Exchange, the firm said core net earnings exclude foreign exchange gains or losses, interest income from bonds, equity in earnings from associates, interest expense related to the acquisition financing of the Bank of the Philippine Islands (BPI) shares, BPI cash dividends, a one-time gain from the BPI-Robinsons Bank merger, and others.

Attributable net income surged to P5.1 billion, 9.5 times higher year-on-year, due to a one-time gain resulting from the BPI-Robinsons Bank merger which closed earlier this year.

“We are optimistic that an acceleration in our topline is underway as we continue to open stores and see improved consumption trends aided by inflation reverting to the government’s target range,” said RRHI President and CEO Robina Gokongwei-Pe.

She noted that, “We are, however, also mindful of external headwinds to our business. Escalating tensions in the Middle East, which may drive commodity prices higher and emerging competition from new formats present additional challenges.

“Therefore, we will persist in implementing strategies to differentiate ourselves, which include offering the most relevant products and services to our target market and providing an exceptional shopping experience through ambient enhancements. 

“Cost controls also remain a priority and the savings we generate will be reinvested back into the business to further drive growth.”

Consolidated net sales grew by 2.9 percent to P45.9 billion in the first quarter of 2024, driven by incremental sales from new stores and sustained demand in the food retail and drugstores segments which accounted for more than 80 percent of the business.

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Blended same store sales growth (SSSG) continued to normalize at 0.9 percent due to an unusually high base in the last two years. 

The timing, however, of the Holy Week holidays affected revenues for the quarter as a number of the company’s non-essential stores or discretionary formats were closed for two days in March 2024.

Nonetheless, the company was still able to grow its gross profit and operating income faster than the topline. 

Gross profit increased by 3.6 percent to P10.9 billion underpinned by category mix improvements, higher penetration of imported products, and increased supplier support. Operating income rose by 3.4 percent to P1.9 billion.

As of March 31, 2024, Robinsons Retail operated a total of 2,399 stores consisting of 756 food segment stores, 1,072 drugstores, 50 department stores, 224 DIY stores, and 297 specialty stores. It also has over 2,100 franchised stores of TGP.

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The article was originally published in Manila Bulletin and written by James A. Loyola.

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