Frank Gaisano, chairman and CEO of Metro Retail Stores Group, Inc. speaks during the listing of the Metro group at the Philippine Stock Exchange. (CDN PHOTO/TONEE DESPOJO)
NEWLY listed Metro Retail Stores Group Inc. (MRSGI) said strong sales and reduced operating expenses pushed its net income up by 23.5 percent to P344 million in the first nine months of this year.
The 15 percent net sales improvement was supported by strong same store sales growth of 9.5 percent, led by the hypermarket segment. Growth in revenues of new stores also contributed to the overall sales increase.
Metro Retail, which debuted on the Philippine Stock Exchange last November 24, opened two more supermarkets and four hypermarkets after September 30, 2014.
Income before tax grew 24 percent to P492 million in the first nine months of 2015 from P397 million generated during the same period last year. This was a significant improvement compared to the first half results, which recorded an increase of 21.2 percent in pre-tax earnings. “Our third quarter results reflect our customers’ and partners’ unwavering support for MRSGI,” Frank S. Gaisano, MRSGI chairman and chief executive officer, said in a statement to the Philippine Stock Exchange.
“It also underscores our confidence in the company’s capacity for expansion and widening its customer base, as the market continues to believe in the MRSGI retail experience. We are particularly encouraged by the performance of our stores in the Visayas region,” he added. As of November 24, Metro has 46 stores nationwide, composed of 24 supermarkets, 12 hypermarkets and 10 department stores. The company also disclosed that its bank debt level remained very low at P950 million, even as the proceeds from the public listing are expected to add around P3.4 billion by yearend to the company’s net worth, which stood at P2.7 billion as of September 30, 2015. MRSGI’s recent bold debut on the PSE was the largest new equity issuance — at P3.6 billion — for the year 2015, which saw only three initial public offerings (IPOs) owing to volatile global markets.
Its IPO proceeds will be used to fund the company’s store expansion and enhancement of its distribution and logistics facilities.
“Taking MRSGI public was a strategic transformational process that enables us to accelerate growth, improve margins and operating efficiency, strengthen further our balance sheet, and consequently create value for our investors,” Gaisano said.