Robinsons Retail Holdings Inc., a unit of the Gokongwei group, said Friday net income in the first half of 2019 declined 32 percent to P1.77 billion from P2.62 billion year-on-year on higher interest expenses.
RRHI said in a disclosure to the stock exchange first-half revenues rose 28 percent to P77.2 billion from P60.45 billion a year ago on higher same-store-sales growth, opening of new outlets and the consolidation of Rustan Supercenters.
With the acquisition of Rustans Supercenters in November last year, RRHI said the supermarket segment now accounted for 54 percent of its entire business from 46 percent in the same period last year.
The SSSG in the first half of the year was driven by the drugstore segment, which registered a double-digit growth of 11.2 percent, followed by supermarket by 4.3 percent, Do-It-Yourself by 3.6 percent, specialty stores by 3.6 percent, and convenience store by 2.3 percent.
Interest expenses surged to P1.2 billion in the first half of 2019 from just P55 million-ton year. The company attributed the increase in interest expenses to the non-cash interest expenses on the lease liability related to the new accounting standard on leases under the Philippine Financial Reporting Standard that took effect effective January 1, 2019.
Excluding the impact of the PFRS, core net earnings declined 2.2 percent to P2.2 billion, an improvement from the 16.2-percent drop in the first quarter.
Net income in the second quarter fell 33 percent to P946 million from P1.4 billion on year year.
Net sales jumped 26.5 percent to P39.86 billion from P31.49 billion in the same quarter last year due to higher same-store-sales growth and the consolidation of Rustan Supercenters. The SSSG in the second quarter stood at 3.7 percent.
Excluding the franchised stores of The Generics Pharmacy, RRHI ended 2018 with 1,920 stores, comprising of 255 supermarkets, 49 department stores, 211 do-it-yourself stores, 518 convenience outlets, 510 drugstores and 377 specialty stores.
The group’s gross floor area expanded by 18.5 percent year-on-year to 1.39 million square meters.
RRHI said it spent P1.5 billion in capital expenditures during the first half of the year.