Retailers SSI Group Inc. and Metro Retail Stores Group Inc. trimmed their losses in the third quarter as they implemented cost-cutting initiatives to cope with the pandemic.
Metro Retail said in a disclosure to the stock exchange third-quarter net loss reached P124.7 million, down from P337.21-million net loss it booked in the same period last year.
Revenues rose 7.7 percent in the third quarter to P7.56 billion from P7.02 billion.
The company said it continued to realize the benefits of cost reduction and optimization initiatives as operating expenses in the third quarter contracted by 7.7 percent to P1.44 billion from P1.56 billion a year earlier.
The company said it remained upbeat for better results moving forward, especially in the holiday season.
“With the country pivoting toward economic recovery largely due to relaxed restrictions and ongoing vaccination rollout, economic activities and consumer sentiment have been improving. The company, however, will continue to practice fiscal prudence as it invests resources in its omnichannel strategy,” Metro Retail said.
Metro Retail registered a net loss of P306 million in the first nine months, also an improvement from a net loss of P421 million last year.
The Cebu-based retailer said it would continue with the expansion of its grocery chain across the Visayas while pursuing other opportunities to grow its department stores and other store formats in key strategic areas.
Meanwhile, SSI Group also reduced its losses to P270.9 million in the third quarter from P285 million a year ago. It said that despite the reimposition of stricter mobility restrictions, third-quarter sales improved by 28 percent to P2.9 billion,
“In the face of the challenges presented by COVID during the third quarter, the group continued to implement the strategies we have put in place to drive sales, within low foot traffic environments, to grow cashflows and to optimize costs and expenses,” SSI president Anton Huang said.
“With Covid cases hopefully controlled through Christmas, we expect that the sales momentum that started at the beginning of October will continue until the end of the year,” Huang said.