Metro Retail Stores Group, Inc. Reports P50 Million in Net Income for Q12024

In the first quarter of 2024, Metro Retail Stores Group, Inc. (MRSGI) reported net income of PhP50.3 million, a 16% decrease from PhP60.0 million in the same period the previous year. This decline was mostly caused by narrower margins brought on by a smaller share of the general merchandise division.​

MRSGI's net sales increased by 4.8% to PhP8.7 billion in the first quarter of 2023 from PhP8.3 billion in the same period the previous year, despite the comparatively modest first quarter post-holiday spending. Since the company's 2015 public debut, first-quarter sales have never been higher. In addition, comparable store sales increased by 2.8% year over year in the first quarter of 2024.

Due to robust sales of staple foods, the food retail industry grew by 7.9% in comparison to the previous year. Due to ongoing high inflation, general merchandise had a 2.9% decline in spending, which was a restraint on discretionary spending.

MRSGI's blended gross margin dropped somewhat from 21.9% in the same period last year to 20.8% in the first quarter of 2024 due to the decreased share of the general retail division. In the meantime, the company's cost-cutting and optimization efforts helped it increase operating efficiency; in the first three months of 2024, the operating expense-to-sales ratio dropped to 20.4% from 21.0% in the previous year.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 5.1% to PhP389.2 million in the first quarter of this year from PhP410.2 million in the same period last year, mostly due to reduced margins.

The company was able to maintain a low bank debt-to-equity ratio of 0.30 and a robust cash position of PhP3.2 billion.

Last January, MRSGI opened its Metro Value Mart in Brgy. Gun-ob, Lapu-Lapu City, which brings its current network to 64 stores. The Company also took significant steps towards increasing its presence in the Visayas with the groundbreaking of five supermarkets in strategic areas in Cebu and Leyte.

MRSGI recently inaugurated its 10-hectare Metro Distribution Center in Sta. Rosa, Laguna that aims to strengthen its logistics system and lays the foundation for the expansion pipeline throughout Luzon in the next few years.

“Looking ahead to 2024, we are poised for growth with cautious optimism. Our strategic plans are geared towards calibrated expansion, enhancing our online presence, and continuing to modernize our stores,” MRSGI President and COO Manuel Alberto remarked during the Company’s 2024 annual stockholders’ meeting.

To date, Metro Retail operates a total of 64 branches across Luzon and the Visayas under the store formats Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart. The Company also provides online shopping services through shopmetro.ph, allowing customers to choose between home delivery or pick-up at the nearest Metro Store.