Metro Retail profit plunges by 73%
Expansion-related costs dragged the bottom line of Metro Retail Stores Group Inc. (MRSGI) in the first quarter this year by 73.4 percent to P13.4 million, offsetting sales gains.
The Gaisano-led grocery retailer on Tuesday also said net sales in the January to March period rose by 2 percent to P8.9 billion.
Growth was on the back of higher gains from its food retail and general merchandise businesses, MRSGI said in a disclosure.
Rental income during the period jumped 10.6 percent to P103.7 million. This was attributed to new tenants and higher rates from existing tenants.
Meanwhile, operating expenses rose by 13 percent to P1.8 billion. Higher power rates led to more expensive utility costs. Also, personnel expenses increased to support the opening of new sites.
Last year, MRSGI opened eight new branches in Samar, Negros and Cebu. This widened its network to 71 branches across its various store formats. These include Metro Supermarket, Metro Department Store, Super Metro Hypermarket, Metro Value Mart and Metro Home and Lifestyle.
The company now has 72 branches following the opening of a Metro Value Mart in Talisay City, Cebu.
“Through 2025, MRSGI will continue to elevate customer experience, focus on optimizing our operations and strategically expand our network to further strengthen our market position and deliver sustainable growth,” said Joselito Orense, president and chief operating officer of MRSGI.
The company recently ventured into the home improvement sector. This new format is already offered in the provinces of Pampanga, Negros Occidental and Samar.
MRSGI likewise opened a 3-hectare Metro Distribution Center in Laguna last year. This paved the way for its five-year expansion plan in Luzon.
The facility is currently capable of handling up to 25,000 cases daily for both inbound and outbound processes. This translates to a maximum throughput of 1.5 million cases a month.
