RRHI earnings drop 32% in 1st 3 months

Font Size

ROBINSONS Retail Holdings, Inc.’s (RRHI) attributable profit dropped by more than a third in the first quarter of 2019, amid a double-digit topline growth due to the consolidation of Rustan Supercenters, Inc. (RSCI).

In a statement issued Monday, the Gokongwei-led retailer said net income attributable to the parent fell 32% to P827 million, versus the P1.21 billion it realized in the same period a year ago. Excluding RSCI, the company would have booked an eight percent uptick in core net earnings to P1 billion.

RRHI completed the acquisition of the Rustan’s chain in December last year, and is now working on rationalizing its operations.

RSCI also dragged the listed firm’s operating income to P1.2 billion, 6.1% lower year on year. Without RSCI, operating income would have risen by 7.3%.

Net sales, meanwhile, went up by 29% to P37.35 billion, driven by the full quarter contribution of RSCI. This was supported by blended same-store sales growth (SSSG) of 4.1%.

On a stand alone basis, the drugstore business posted the highest SSSG of 13.9% on account of the high incidence of flu, cough, colds, and measles during the period. The supermarket segment, which contributed 55.5% of consolidated sales, booked an SSSG of 5.5%.

RRHI ended the quarter with a total of 1,911 stores, comprised of 253 supermarkets, 50 department stores, 209 do-it-yourself stores, 512 convenience stores, 510 drugstores, and 377 specialty stores. The retailer plans to add 120-150 stores this year, but openings will mostly be held in the second half of the year.

The Gokongwei-led firm also said it spent P650 million in capital expenditures for the quarter, out of its budget of P3.5-5 billion for 2019. — Arra B. Francia