Lance Gokongwei gets off retailing to distribution sector
Robinsons Retail Holdings Inc. (RRHI) wants to tap the country’s motorcycle market potential and go head-to-head with its neighbors in Southeast Asia via a P146.4-million investment.
In a regulatory filing on Monday, RRHI said it had signed a share sale agreement to fully acquire Premiumbikes Corp., a local distributor of Yamaha, Honda and Suzuki motorcycles, among others, from Lance Gokongwei, the president and CEO of parent firm JG Summit Holdings Inc.
“This acquisition marks a key milestone for our company as we enter a new and fast-growing category that is also profitable,” RRHI president and CEO Stanley Co said in their disclosure.
“This move reflects our commitment to enhancing the retail experience and providing accessible, reliable and affordable products that meet the evolving needs of Filipino consumers,” Co added.
Premiumbikes currently operates 214 stores across the country. Last year, Premiumbikes logged a 15.2-percent rise in net sales to P4.17 billion and Ebitda (earnings before interest, taxes, depreciation and amortization) of P324.2 million, representing a 36.7-percent surge and reflecting the Philippines’ growing motorcycle market.
Low penetration
According to RRHI, the Philippine market “remains underpenetrated,” with a people-to-motorcycle ratio of 8:1, versus Vietnam’s and Indonesia’s 4:1 and Thailand’s 3:1.
Data from the Federation of Asian Motorcycle Industries shows that in the first quarter, there were 447,865 motorcycles sold in the Philippines. Vietnam, on the other hand, sold 673,055 units.
“The Philippines still has a low motorcycle penetration ratio compared to other Southeast Asian markets, which gives us a lot of room to grow,” Premiumbikes general manager Joselito Pojol said. “We are excited to become part of the Robinsons Retail group and look forward to bringing our stores and services to more communities across the country.”
The deal is still subject to customary closing conditions, including clearance from the Philippine Competition Commission.
