METRO RETAIL Stores Group, Inc. (MRSGI) reported its net income fell by 6% to P90.2 million in the first quarter, as sales were affected after a fire hit its supermarket and department store in Cebu last January.
In a regulatory filing, MRSGI said net sales dropped 12% to P6.968 billion during the January to March period, from P7.92 billion in the same period the previous year.
“The decrease was largely due to the combined effect of a temporary closure of a supermarket and department store that were damaged by fire and the rationalization of sales to resellers which were not profitable,” the company said.
Rental income, likewise, declined by 21% to P60.5 million.
“While we have encountered difficulties as the year opened, we are committed to rebuilding and recovering, maximizing the opportunities brought about by the booming retail industry,” Metro Retail Chairman and Chief Executive Officer Frank S. Gaisano was quoted in a separate statement as saying.
MRSGI said it recently opened a 900-square meter Metro Supermarket inside Ayala Center Cebu, while the Metro department store and supermarket are being rebuilt.
“We remain focused on our plans on sales and margin improvement efficiencies, and we are seeing encouraging results in our retail sales as we continue to strengthen our wholesale business,” Metro Retail President and Chief Operating Officer Arthur Emmanuel was quoted as saying.
The Gaisano-led firm said it is looking to open a minimum of five stores before the year ends. Metro Retail is targeting to double its 2015 gross floor area by 2020. — Denise A. Valdez