Cebu retailer reports bigger profit

March 16,2016 - 10:15 PM
METRO/NOV 24,2015: Frank Gaisano, chairman Metro Retail Stores, Inc. answer media during a press conference at the Philippine Stock Exchange. (CDN PHOTO/TONEE DESPOJO)

Frank S. Gaisano (CDN PHOTO/TONEE DESPOJO)

CEBU-BASED retailer Metro Retail Stores Group, Inc. (MRSGI) posted a net income after tax of P758.6 million for the year 2015 — 20.6 percent higher than last year.

In a disclosure to the Philippine Stock Exchange, the company said net sales grew by 13.9 percent to P32.3 billion in 2015. The same store sales grew by 8.8 percent.

The Gaisano-led company marked several milestones last year, including its debut in the stock market and a partnership with Ayala Land, Inc. for the establishment of its stores in four new Ayala commercial developments.

The new stores include a department store and supermarket in Capitol Central in Bacolod City, Negros Occidental; a supermarket in The Shops at Atria in Mandurriao, Iloilo City; a supermarket in Central Bloc in Cebu City; and a department store and supermarket in the Ayala Malls Feliz in Pasig City.

“2015 has certainly been a banner year for MRSGI, as our strong financial performance clearly shows,” company chairman and CEO Frank S. Gaisano said in a statement.

“I believe that 2016 will be another record year for MRSGI, being well on track with our store expansion and logistics efficiency initiatives to support our goal of doubling our footprint in the next five years,” he added.

The company said it expects to continue with its enhancement plans, from consistently expanding its offering to deliver relevant products and services to its customers, to investing in its people and organization to create a stronger, more capable MRSGI from within.

“These strategic initiatives will enable MRSGI not only to achieve our financial goals, accelerate growth and increase operational efficiency, but more importantly elevate the quality of service we provide to our loyal customers,” Gaisano said.

As of February, Metro has 47 stores across its three retail formats —  hypermarket, department store and supermarket.

The company is expanding its department store network with the acquisition of the department store assets of SIAL Specialty Retailers, Inc. (SIAL) in Fairview Terraces Mall and the UP Town Center.

Earnings before interest, taxes, depreciation and amortization (EBITDA) went up 18 percent to P1.49 billion from P1.26 billion in the same period last year due to the reduction in operating expenses from initiatives undertaken on specific expenses.

Metro shares closed at P3.98 apiece yesterday, 3.38 percent higher that the previous close of P3.85.

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TAGS: Capitol Central\, Inc., Metro Retail Stores Group

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