Retailers report mixed 3rd quarter results

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Shoppers hunt for good finds inside a Metro Retail department store. -- Photo: Facebook/TheMetroStores

Two of the country’s top retailers reported mixed results for the third quarter of 2017.

In a regulatory filing, Metro Retail Stores Group, Inc. (MRSGI) said its net income surged by 108% to  P148.95 million in the July to September period, from the P12.6 million it generated in the same period in 2016. Third- quarter net sales went up 2% to P7.98 billion.

The positive performance during the third quarter allowed the MRSGI to double its earnings for the nine months ending September, to P550 million against the P274.65 million recorded in the same period last year. 

Net sales jumped 3% to P24.42 billion for the nine-month period.

“The increase in net sales was largely a result of opening a new store during the last quarter of 2016 and two new stores in 2017. The Company has a total of 52 stores as of September 30, 2017 versus 49 stores as of September 30, 2016. Same-store sales growth was 0.4% in 2017 as compared to 2.9% in 2016,” MRSGI said.

Meanwhile, Robinsons Retail Holdings, Inc. (RRHI) reported its net income attributable to the parent fell 5.4% to P1.21 billion for the July to September period, from P1.27 billion during the same period a year ago.

Net sales for the third quarter went up 8.7% to P27.69 billion, from the P25.48 billion from year-ago levels. 

RRHI’s attributable profit grew at a slower pace of 5.8% to P3.49 billion for the first nine months of the year, which the company said was due to “lower foreign exchange gains and higher taxable income on the back of strong growth in operating profit.”

Net sales for the nine-month period jumped 10% to P81.18 billion, on the back of sustained same-store sales growth and contribution from new stores.

RRHI’s largest segment, Robinsons Supermarket, grew sales by 7.4% to P37.5 billion during the January to September period, driven by the contribution of 15 new stores and 2.1% growth in same-store sales.

Robinsons Department Store’s sales grew by only 1.7% to P10.59 billion, which RRHI attributed to “competitive pressures affecting the sales of same stores and the escalation in operating expense.”

The DIY segment recorded a 11.7% increase in sales to P7.9 billion, fueled by strong same-store sales growth, new stores, and the acquisition of Homeplus Trading Depot.

RRHI’s convenience store business saw system-wide sales grow by 1.2% to P6.38 billion, while merchandise sales were flat at P4.15 million as of end-September.

The drug store segment, which includes South Star Drug and The Generics Pharmacy, posted net sales of P10.66 billion — 27% higher than last year’s P8.41 billion.

RRHI’s specialty stores business recorded a 18% increase in net sales to P10.52 billion, which was due to the sales contribution  of 28 new stores, and 8.4% growth in same-store sales for the nine-month period.

As of end-September, RRHI had 1,658 stores, comprised of 146 supermarkets, 46 department stores, 185 DIY stores, 489 convenience stores, 467 drugstores and 325 specialty stores. With the 1,982 franchised stores of The Generics Pharmacy, RRHI’s store network would reach 3,640. — ABF