Cebu-based retailer Metro Retail Stores Group Inc. (MRSGI) said Monday it registered P50.3-million net income in the first quarter of 2024, down 16 percent from P60 million a year ago on lower margins.
First-quarter net sales, however, rose 4.8 percent to P8.7 billion from P8.3 billion. This was the highest recorded first-quarter sales since the company became public in 2015.
The company said in a disclosure to the stock exchange same-store-sales also improved by 2.8 percent year-on-year.
The group’s food retail increased 7.9 percent on strong sales of basic groceries. General merchandise declined 2.9 percent amid the spending constraint on discretionary items due to persistent high inflation.
Rental income also climbed 17 percent to P93.8 million with the re-opening of the economy and as non-essential tenants became operational.
MRSGI’s blended gross margin slightly declined to 20.8 percent in the first quarter of 2024 from 21.9 percent in the same period last year with the reduced share to business of general merchandise.
Cost of sales reached P6.91 billion in the three-month period ending March 2024, up 6.5 percent from P6.48 billion a year earlier on higher sales.
Operating expense to sales ratio improved to 20.4 percent from 21 percent on back of its cost-saving and optimization initiatives.
MRSGI opened its Metro Value Mart in Barangay Gun-ob, Lapu-Lapu City in January. The company also broke ground on five supermarkets in strategic areas in Cebu and Leyte to expand its presence in the Visayas.
It recently inaugurated its 10-hectare distribution center in Sta. Rosa, Laguna that aims to strengthen its logistics system and lays the foundation for the expansion pipeline throughout Luzon in the next few years.
“Looking ahead to 2024, we are poised for growth with cautious optimism. Our strategic plans are geared towards calibrated expansion, enhancing our online presence, and continuing to modernize our stores,” MRSGI president and chief operating officer Manuel Alberto said.
MRSGI operates 64 branches across Luzon and the Visayas under the store formats Metro Supermarket, Metro Department Store, Super Metro Hypermarket and Metro Value Mart.
