Robinsons Retail Holdings Inc. of the Gokongwei Group plans to spend between P5 billion and P7 billion in capital expenditures to expand its store network this year.
RRHI said in a recent investor presentation it aimed to add 180 to 200 stores across its brands as it expected sales to remain strong as the economy reopened.
RRHI was operating 2,310 stores, excluding 2,151 pharmacy stores under The Generic Pharmacy brand as of end-2022. These stores occupied 1.5 million square meters of gross floor area.
This year’s programmed capex is higher than P4.7 billion it spent in 2022.
RRHI expects same-store sales growth of 4 percent to six percent this year, compared to 11.8 percent blended SSSG in 2022.
RRHI’s core retail operations cover six business segments including supermarkets, department stores, Do-It-Yourself stores, convenience stores, drug stores and specialty stores.
RRHI reported a 26.7-percent increase in 2022 net income to P5.7 billion from P4.53 billion in 2021, on the back of a double-digit growth in sales.
Consolidated net sales reached P178.8 billion in 2022, or 16.6 percent better than the previous year’s and higher than pre-pandemic levels, driven by gradual return to normalcy, including the reopening of face-to-face classes in schools and increased travel and tourism.
“We are pleased with our operating performance in 2022. Building on the momentum last year, our company will continue to take advantage of the economy’s return to normal. We will focus on improving store efficiency and increasing market coverage with more stores in the pipeline for 2023,” said RRHI president and chief executive Robina Gokongwei Pe.
RRHI completed the acquisition of another 4.4 percent stake in Bank of Philippine Islands in January 2023.
RRHI said the acquisition would enable it to tap into the extensive consumer customer base of BPI to cross-sell products and services. It said this would also allow the company’s suppliers tap into BPI’s financial products to help fund their working capital requirements as they expand their business.