Metro Retail registers strong growth in first half of 2025

For the first semester of 2025, Metro Retail Stores Group, Inc. (MRSGI) posted a net income of P146.3 million, a significant 45.7% jump from 2024. The Company’s strong performance was particularly driven by its second-quarter results, where its net income reached P132.9 million, marking a hefty upswing relative to the P50.1 million earnings for the same period last year.

Net sales climbed 6.6% to P9.9 billion in the second quarter, primarily attributed to new store openings. This growth brought overall six-month net sales to P18.8 billion, a 4.4% increase compared to the prior year. Furthermore, same-store sales growth for the second quarter rose by 1.7%, a positive turnaround from the 1.7% decrease in the first quarter.

Contributing to the financial performance were strong results from both of MRSGI's main business segments. Food retail recorded a 2.8% increase in sales for the first six months, driven by the fresh category and sales boost from supermarkets opened over the past year. Simultaneously, general merchandise expanded by 8.8% from the previous year, with notable contributions from back-to-school and home products.

The Company’s blended gross margin also improved to 21.8% from 20.7% in 2024, coming from margin gains in food retail and higher share to business of general merchandise.

Operating expenses, on the other hand, increased to 21.4% of sales in the first half of 2025, up from 20.3% in 2024, attributed largely to higher utility rates in the Visayas region and increased labor costs.

Overall, MRSGI’s cash earnings for the first six months as measured by earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to P1,014.0 million, a solid 27% growth from the previous year.

The Company's results were benefited by its continued strategic expansion. Recently, MRSGI opened five (5) new supermarkets in Talisay City and Liloan in Cebu, Ligao City and Guinobatan in Albay, and in Gubat, Sorsogon, bringing its total store network to 76 stores.

For the second consecutive year, the Company has been included in the Fortune Southeast Asia 500 list of the region’s largest companies.

Joselito G. Orense, President and Chief Operating Officer of MRSGI, expressed optimism about the Company’s performance in the second quarter. He remarked, "Our strong second-quarter results, highlighted by net income that more than doubled and EBITDA with 47% growth, demonstrate our strategic execution and continued focus on profitability, expanding our network and enhancing product offerings that resonate with our customers' preferences."

He acknowledged the challenges posed by increased operating costs but noted, "We are encouraged by the recovery in same-store sales and the significant growth in margins, which collectively establish a solid foundation for the remainder of the year.