Metro Retail seeks growth despite profit drop

Metro Retail Stores Group, Inc. (MRSGI), the publicly listed retailer of the Gaisano Group, is exploring new opportunities to close the year on a high and gain traction for 2025, following a double-digit decline in net income for the first nine months of the year.

The company reported a 19.6 percent drop in net income from January to September, falling to P204.7 million from P254.6 million a year ago, primarily due to increased non-cash charges related to its expansion efforts.

Despite this, MRSGI saw a 4.2 percent increase in net sales, reaching P27.6 billion compared to P26.5 billion last year. The growth was supported by steady contributions from existing stores and ongoing expansion initiatives.

Blended same-store sales for the nine-month period grew by 1.5 percent, driven by a 5.8 percent increase in food retail, while general merchandise saw a 1.2 percent decline.

Gross margin slightly decreased to 21.1 percent from 21.7 percent in the same period last year, reflecting the company’s efforts to clean up aging stocks. 

However, MRSGI improved its operating expense-to-sales ratio, which decreased from 20.5 percent in 2023 to 20.2 percent in 2024, thanks to tighter cost control measures, including increased use of solar panels in key locations.

The company’s cash earnings, measured by EBITDA (earnings before interest, taxes, depreciation, and amortization), remained stable at P1.29 billion for the period.

“Our results for the first nine months, including steady cash earnings, reflect the resilience of the company as we navigate the evolving retail landscape,” said MRSGI President and COO Manuel Alberto. 

“As we approach the final quarter, we remain focused on adapting to market conditions, identifying new opportunities, and realigning our priorities to close the year on a strong note and build momentum for 2025.”

In the past two months, MRSGI opened five new stores in the provinces of Samar, Leyte, and Cebu, bringing its total store count to 69.

Currently, MRSGI operates 69 stores across Luzon and the Visayas under various formats, including Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart, as part of its ongoing commitment to sustainable growth through expanded retail presence.