Retailers SSI Group Inc. and Metro Retail Stores Group Inc. saw their profits dwindle in the first nine months of the year.
Metro Retail said in a disclosure to the stock exchange net income declined 23.7 percent in January to September to P112.4 million from P147.3 million a year earlier, on operating losses sustained from opening of new stores.
Metro Retail said net sales increased 6.1 percent to P23.73 billion from P22.36 billion in the same period last year following the opening of three new stores.
Meanwhile, SSI Group of the Tantoco family said it posted a net income of P306 million in the nine-month period, reflecting a decline in gross profit margin.
It said excluding write-offs associated with the group’s store rationalization program and write”offs of expiring net operating loss carry overs, core net income in the first nine months amounted to P395 million.
SSI said revenues rose 7.2 percent to P12.6 billion, driven by the diversity of the group’s brand portfolio and resilient consumer demand.
“For the balance of the year we remain focused on driving top line growth and operating efficiencies as we look forward to a strong Christmas shopping season. I remain confident that the actions we are taking in 2016 will ensure a return to growth from 2017 onwards,” said SSI Group president Anthony Huang.
