Metro Retail posts 73% plunge in Q1 income, pushes store expansion – BusinessWorld Online
LISTED Metro Retail Stores Group, Inc. saw its first-quarter (Q1) net income fall 73.4% to P13.4 million from P50.3 million last year, weighed down by non-cash charges linked to its expansion program.
Despite the decline, the company is actively expanding its store network, reaching 72 outlets with the opening of a new Metro Value Mart in Talisay City, Cebu last month.
“Through 2025, Metro Retail will continue to elevate customer experience, optimize operations, and strategically expand to strengthen its market position and deliver sustainable growth,” President and Chief Operating Officer Joselito G. Orense said.
Net sales rose 2% to P8.9 billion, driven by growth in food retail and general merchandise, but same-store sales dropped 1.7%.
Blended gross margin improved 4.4% to P1.9 billion, with gross margin as a percentage of sales rising to 21.3% from 20.8%.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 6.1% to P413 million, while operating expenses rose due to higher utilities and labor costs.
Metro Retail operates formats including Metro Supermarket, Metro Department Store, Super Metro Hypermarket, Metro Value Mart, and Metro Home and Lifestyle.
Shares rose 0.81% to close at P1.24 on Tuesday. — Revin Mikhael D. Ochave
