Newly-listed Metro Retail Stores Group Inc. said Tuesday net income in the first nine months of the year rose 24 percent to P344 million from P278 million year-on-year on higher sales and lower operating expenses.
Metro Retail said in a disclosure to the stock exchange net sales from January to September this year improved 15 percent to P22.5 billion from P19.6 billion booked in the same period in 2014, as same store sales posted a growth of 9.5 percent, led by the hypermarket segment.
The company said the opening of two new supermarkets and four new hypermarkets also contributed to the overall sales increase.
Income before income tax jumped 24 percent to P492 million in the first nine months of 2015 from P397 million generated during the same period last year.
“Our third quarter results reflect our customers and partners’ unwavering support for MRSGI,” Metro Gaisano chairman and chief executive Frank Gaisano said.
“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.
The group as of November 24, 2015 had 46 stores nationwide, comprising of 24 supermarkets, 12 hypermarkets and 10 department stores.
The company also disclosed that its bank debt level remained low at P950 million.
Metro Gaisano last month made its debut at the the Philippine Stock Exchange despite volatile market conditions, raising as much as P3.6 billion in proceeds.
The company plans to use proceeds from the IPO to finance store expansion and the 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.
Metro Gaisano plans to double its retail footprint over the next five years by opening 50 to 70 stores.
Metro Retail has 400,000 square meters of gross floor area across 46 stores, mostly in Visayas.
The company identified seven locations for expansion in 2016.
Share price of Metro Gaisano on Tuesday closed unchanged at P3.74.
