METRO Retail Stores Group Inc. (MRSGI) reported a 19.6-percent drop in its nine-month net income to P204.7 million from last year’s P254.6 million, said to be due to higher non-cash charges related to its expansion program.
“The results of our first nine months with sustained cash earnings reflect the company’s resilience as we navigate the evolving retail landscape,” MRSGI President and Chief Operating Officer Manuel Alberto said.
Net sales reached P27.6 billion, 4.2 percent higher than last year’s P26.5 billion, on sustained contributions from its existing network and continued store expansion.
For the third quarter alone, net sales were steady at P9.56 billion, which the company attributed to lingering inflationary pressures and cautious consumer spending.
Blended same-store sales grew 1.5 percent year-on-year, driven by 5.8-percent growth in food retail sales that offset a 1.2-percent decline in general merchandise sales.
Gross margin dipped to 21.1 percent from 21.7 percent as the company cleared its aging stocks.
Earnings before interest, taxes, depreciation and amortization were stable at P1.29 billion.
The company said that it had opened five stores in the last two months in Samar, Leyte and Cebu, expanding its total network to 69 stores nationwide as it continues to grow its home retail footprint.
“Moving into the final quarter, we remain focused on adapting to market conditions, finding new strategic opportunities, and realigning our priorities to ensure we end the year on a more positive note and to gain momentum for 2025,” Alberto said.
Metro Retail shares were unchanged on Monday at P1.21 each.
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