MANILA, Philippines – Metro Retail Stores Group Inc. (MRSGI) reported a net profit of 33.34 million pesos in the first quarter of the year, a turnaround from the net loss of 126.47 million pesos recorded in the same period last year.
MRSGI said foot traffic in its stores continued to pick up thanks to more relaxed health protocol restrictions.
“Our positive financial result is a testament to our continued efforts to increase efficiency, improve merchandise assortment and sourcing, and expand the omnichannel strategy,” said Manuel Alberto, President and COO of Metro Retail.
“We will continue to provide an excellent shopping experience for our current and future customers and will pursue multifaceted initiatives to position ourselves for incremental growth,” he said.
Amid Omicron’s surge in January and a relatively lean first quarter after consumer spending peaked during the Christmas season, net sales jumped 23% to 8.51 billion pesos. This increase is mainly due to a 23.4% increase in comparable store sales and the contribution of four new stores opened last year.
MRSGI also benefited from the country’s economic recovery and the easing of mobility; as a result, its retail food and general merchandise businesses increased by 21.2% and 29.8%, respectively.
The company continued to improve operational efficiency through the continued implementation of cost reduction measures and optimization initiatives.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the first quarter increased by 63.2% to P386.38 million.
Metro Retail also posted a strong cash and liquidity position at 3.58 billion pesos, while debt remained manageable.
The company recently opened two new stores – Metro Paseo Supermarket in Cebu City and Metro Hilongos Supermarket in Leyte, expanding its current store network to 63.
The company is committed to expanding its physical network, but at the same time Metro Retail also recognizes the growing importance of online shopping and the essential role of an omnichannel presence beyond the pandemic.