Expansion into new markets powered earnings growth for Metro Retail Stores Group Inc. in 2025, as the retailer balanced higher costs with stronger sales and improved margins.
The Gaisano-led firm reported a 12 percent rise in net income to P682.64 million, supported by a 4.9 percent increase in total sales to P41.56 billion. Growth was driven by both new store openings and steady performance across its core retail segments.
During the year, the company opened 10 new stores across Luzon and the Visayas, including supermarkets, department stores, and smaller-format Metro Value Mart outlets aimed at expanding into high-growth areas. Same-store sales growth reached 0.6 percent, reflecting stable consumer demand despite minor disruptions.
Margins also improved, with blended gross margin rising to 21.8 percent from 21.4 percent, helped by stronger performance in food retail. This gain helped offset a 9.3 percent increase in operating expenses, which was attributed to expansion-related costs, higher utilities and wages, and calamity-related losses.
“By strategically expanding our network into high-growth regions and introducing innovative store formats, we strengthened our market presence, delivered higher sales and margins, and improved cash earnings,” said president and chief operating officer Joselito Orense.
To manage rising expenses, the company continued to implement cost control measures and sustainability initiatives, including installing solar photovoltaic systems in 19 stores to reduce long-term energy costs.
Metro Retail, which operates supermarkets, department stores, and neighborhood formats, said it remains focused on expanding its footprint and enhancing efficiency to sustain growth in a competitive retail environment.