Robinsons Retail Holdings Inc., the retail holding company of the Gokongwei Group, said its board approved a P2-billion share buyback program amid the current market slump on fears over the spread of the novel coronavirus (COVID-19).
“The objectives of the share buyback program are to enhance shareholder value and to manifest confidence in the Company’s value and prospects through the repurchase of the common shares of the Company and through the return of a portion of the company’s capital to its shareholders,” said Robinsons Retail in a disclosure to the stock exchange.
The company said the share buyback program would not involve any active and widespread solicitation from stockholders. It will be implemented in the open market through the trading facilities of the Philippine Stock Exchange.
The share buyback program will not affect any of the company’s prospective and current projects and investments.
From a 52-week high of P87 per share, stock price of Robinsons Retail on Monday plunged to a 52-week low of P56.70 on massive sell-off across all markets due to the outbreak of COVID-19.
The board of Robinsons Retail also approved the adoption of a new dividend policy effective 2020.
The company will implement an annual cash dividend payout ratio of 40 percent of the net income attributable to parent for the preceding fiscal year.
Robinsons Retail earlier reported a net income of P3.8 billion in 2019, down 25 percent from P5.1 billion a year ago, largely due to the effect of the new accounting standard.
Consolidated net sales increased 22.8 percent in 2019 to P162.9 billion, driven by the same store sales growth of 3.4 percent, additional sales from the new stores opened in the last 12 months and the full year consolidation of Rustan Supercenters.
Excluding the franchised stores of The Generics Pharmacy, Robinsons Retail ended the year with 1,938 stores comprising of 265 supermarkets, 49 department stores, 222 do-it-yourself stores, 507 convenience stores, 519 drugstores and 376 specialty stores.