Metro Retail Stores Group, Inc. (MRSGI) continues to gear up for recovery with stronger optimism, as the Company’s foot traffic picks up with improving consumer spending following loosened health protocol restrictions.
MRSGI recorded a net income of PhP33.34 million for the first three months of 2022, a significant 126.4% turnaround from the PhP126.47 million net loss in the same period last year.
Amid the Omicron surge in January and the relatively lean first quarter after peak consumer spending in Christmas season, net sales jumped by 23.0% to PhP8.51 billion against PhP6.92 billion for the same period last year. The increase was mainly driven by the 23.4% rise in comparable store sales and the contribution of four new stores that opened last year. MRSGI also benefitted from the country’s recovering economy and easing mobility; hence, both its food retail and general merchandise businesses grew by 21.2% and 29.8%, respectively.
The Company continued to improve its operating efficiency as a result of its ongoing implementation of cost-saving measures and optimization initiatives. This is seen in the improvement of operating expense to sales ratio from 21.4% for the same period last year to 18.0% for the first three months of 2022.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter grew by 63.2% to PhP386.38 million compared to the prior year’s PhP236.74 million. MRSGI also posted a strong cash and liquidity position at PhP3.58 billion while debt was kept manageable.
In line with the Company’s commitment to increase its footprint, MRSGI recently opened two new stores – Metro Paseo Supermarket in Cebu City and Metro Hilongos Supermarket in Leyte – bringing its current store network to 63. While the Company remains resolute in expanding its brick-and-mortar network, MRSGI also acknowledges the growing significance of online shopping and the integral role of having an omnichannel presence beyond the pandemic.
In addition to the recent migration of shopmetro.ph to a progressive web app, the Company continues its efforts in upgrading its own e-commerce platform, adding participating stores in key cities in Luzon and Visayas, and creating strategic partnerships with other online channels and logistics providers.
“Our positive financial outcome attests to our continuous efforts in increasing efficiency, improving merchandise assortment and sourcing, and expanding omnichannel strategy. As we head on to our recovery and growth, Metro Retail Stores will keep its thrust on putting customers at the center of its business. We will continue to offer a great shopping experience to our existing and future customers and pursue multifaceted initiatives to be positioned for progressive growth,” said MRSGI President and COO Manuel Alberto.
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