ROBINSONS Retail Holdings, Inc. (RRHI) will be reallocating P325 million from the proceeds of its initial public offering (IPO) to settle bank loans, and to acquire and maintain information technology assets.
The board approved the reallocation after the coronavirus pandemic hampered the opening and renovation of stores, the company said in a disclosure to the stock exchange on Thursday.
A portion of the P26.27-billion proceeds of the IPO was reallocated from the expansion and renovation of the company’s store network.
“The Board approved the proposed reallocation as the intended usage is expected to strengthen the financial condition of the company during this pandemic,” the company said.
Earnings of the Gokongwei-led company dropped 33% to P719 million in the second quarter due to store closures during the strict lockdown.
Net sales fell by 12% to P34.9 billion, while sales in existing stores contracted 13.9%.
Year to date, RRHI’s attributable earnings slipped 4% to P1.64 billion, as net sales slid 3% to P74.96 billion. Sales in existing stores contracted 3.8%.
Shares in RRHI closed at P61.80 on Thursday, declining by 10 centavos or 0.16%. —Jenina Ibañez
