Cebu-based Metro Retail Stores Group Inc. said Thursday net income climbed 23.7 percent in 2017 to P977 million from P789.5 million in 2016, on lower finance cost and rationalization of operations.
MRSGI, the retail arm of the Gaisano family, said in a disclosure to the stock exchange net sales rose 1.8 percent last year to P35 billion from P34.4 billion in 2016 following the opening of a new hypermarket and a new supermarket.
Same-store sales fell 0.7 percent with decision to rationalize sales to resellers which were unprofitable.
The company said transaction count went down 5.2 percent year-on-year in 2017, but more focused marketing and sales efforts resulted in an average basket size increase of 7.3 percent.
Rental income rose 0.5 percent to P299.9 million from P298.4 million in 2016 with the opening of two new stores, leading to an increase in net leasable space.
Cost of sales was flat at P27.4 billion.
“Margins have improved in 2017 compared to 2016 due to a well-executed margin enhancement plan that included among others, negotiations with suppliers, improvement of share to business of outright sales, lesser clearance sale events, and rationalization of sales to resellers,” MRSGI said.
Finance costs declined 22.8 percent to P17.6 million because of the payment of total outstanding loan of P950 million in March 2016.
The company said it had minimal loans for working capital in 2017 and had nil loans outstanding as of end-2017.
MRSGI said as of end-2017, it was operating 52 stores with a total net selling space of 337,603 square meters. Of the 52 stores, 11 were in Metro Manila, 12 in Luzon and 29 in the Visayas.
It also had nine warehouses nationwide, including three in Luzon and six in Cebu to serve as storage and cross docking facility for department store and supermarket items.
MRSGI earlier said it was on track to doubling gross floor area by 2020 from November 2015 when it joined the stock exchange.
