Robinsons Retail Holdings, Inc. FY 2023 Core Net Earnings Hit PHP5.6 Billion

Robinsons Retail Holdings, Inc.'s net sales increased 7.4% to Php192.1 billion in 2023, driven by same-store sales growth (SSSG) of 3.9% despite inflationary pressures and a high base in 2022 due to the economic recovery. Supermarkets and drugstores were the company's primary growth drivers.

Gross profit reached Php45.6 billion in 2023, up 7.9% year on year and growing faster than revenues. This was fueled by selection changes and the continued popularity of private-label products. Operating income increased by 2.3% year on year, reaching PHP 8.9 billion.
Core net earnings increased at a stable rate of 0.6% year on year to PHP5.6 billion. Core net earnings exclude foreign exchange gains and losses, bond interest income, associate equity earnings, interest expense connected to BPI (Bank of the Philippine Islands) share acquisition financing, BPI cash dividends, and other items. Robinsons Retail's investment in BPI resulted in a net positive carry in 2023, which was much higher than predicted due to speedier repayment of borrowings for the acquisition of BPI shares.

In 2023, net income attributable to equity holders of the parent firm declined 29.5% year on year to PHP 4.1 billion. The decline is primarily due to the reversal of foreign exchange gains in 2022 to a loss in 2023 as the peso appreciates against the US dollar, the reversal of equitized earnings in 2022 to a loss in 2023 as Robinsons Bank's net income under equitized earnings is derecognized following the merger with BPI, and losses from start-up investments.

“The strategic initiatives we put in place in 2023 such as increasing market coverage and improving store efficiency proved instrumental in maintaining our growth trajectory despite the challenging operating environment. As we move forward in 2024, we are optimistic that we can capture the expected recovery in consumer confidence, particularly as inflation pressures begin to subside. We remain committed to expanding our business prudently, balancing the needs of our retail customers with the interests of our diverse stakeholders,” said Robina Gokongwei-Pe, President and CEO of Robinsons Retail Holdings, Inc.

As of December 2023, Robinsons Retail had 2,393 stores, including 349 supermarkets, 1,054 drugstores, 50 department stores, 230 DIY stores, 408 convenience stores, and 302 specialty stores. It also has more than 2,100 TGP franchised locations.