Robinsons Retail Holdings, Inc.'s Q12024 Core Net Earnings Increase by 8.5%

Robinsons Retail Holdings, Inc.'s consolidated net sales increased by 2.9% to P45.9 billion in the first quarter of 2024. This was driven by increased sales from new stores and maintained demand in the food retail and drugstore segments, which accounted for more than 80% of the total company. Due to an extremely high base over the last two years, blended same-store sales growth (SSSG) has continued to normalize at 0.9%. Furthermore, the timing of the Holy Week holidays impacted revenue for the quarter, since several of the company's non-essential locations or discretionary formats were closed for two days in March 2024.

Nonetheless, the company was able to increase gross profit and operating income faster than its topline. Gross profit climbed by 3.6% to P10.9 billion, driven by an improved category mix, better penetration of imported products, and increased supplier support. Operating income increased by 3.4% to P1.9 billion.

Meanwhile, Robinsons Retail reported core net earnings of P1.2 billion, up 8.5% from the previous year. Core net earnings are excluding foreign exchange gains and losses, interest income from bonds, equity in earnings from associates, interest expense related to the acquisition financing of Bank of the Philippine Islands (BPI) shares, BPI cash dividends, a one-time gain from the BPI-Robinsons Bank merger, and others.

Net income attributable to equity holders of the parent business (NIAP) was P5.1 billion, up 9.5 times year on year. This is owing to a one-time gain from the BPI-Robinsons Bank merger, which occurred earlier this year. Earnings per share, based on NIAP, climbed significantly to P3.49, 9.6 times greater than the prior year.

“We are optimistic that an acceleration in our topline is underway as we continue to open stores and see improved consumption trends aided by inflation reverting to the government’s target range. We are, however, also mindful of external headwinds to our business. Escalating tensions in the Middle East, which may drive commodity prices higher and emerging competition from new formats present additional challenges. Therefore, we will persist in implementing strategies to differentiate ourselves, which include offering the most relevant products and services to our target market and providing an exceptional shopping experience through ambient enhancements. Cost controls also remain a priority and the savings we generate will be reinvested back into the business to further drive growth,” said Robina Gokongwei-Pe, President and CEO of Robinsons Retail Holdings, Inc.

As of March 31, 2024, Robinsons Retail has 2,399 stores, including 756 food segment stores, 1,072 drugstores, 50 department stores, 224 DIY stores, and 297 specialty stores. It also has more than 2,100 TGP franchised locations.