FOLLOWING its 20.6-percent growth for 2015, Metro Retail Stores Group Inc. (MRSGI) continued its strong performance by posting P52.8 million in net income after tax from January to March 2016, or 69.2 percent higher than the P31.2 million during the first quarter of last year.
The company’s net sales across all network stores increased by 9.7 percent for the first three months on the back of same-store sales hike of 7.4 percent.
“Building on our robust growth last year, our strong start for 2016 demonstrates our continued commitment to deliver more value to our customers and shareholders,” said Frank S. Gaisano, chairman and CEO of MRSGI. He said the company keeps on expanding its logistics and supply-chain facilities, as well as store network.
MRSGI recently kicked off a 6,500-square-meter rented warehouse facility in Cebu with advanced storage and security features.
Also, it has acquired 67 new delivery trucks—37 of which came from Isuzu Philippines Corp. and 30 from Hino Philippines.
Each vehicle has tracking devices to ensure real-time monitoring of delivery and enhance overall-cost efficiency. In February the Cebu-based retailer opened the Super Metro hypermarket in Calbayog City, Samar.
Its 48th store opened in UP Town Center in Quezon City recently this month, and another is set to open in Fairview Terraces Mall.
The two latter outlets, which brings MRSGI’s department store network to 12, form part of the company’s acquisition of such store-format assets from SIAL Specialty Retailers Inc.—a joint venture between Ayala Land Inc. (ALI) and Store Specialists Inc.
The retail firm has also tied up with ALI for the establishment of its stores in four new Ayala commercial developments.
These include a department store and supermarket in Capitol Central in Bacolod City, Negros Occidental; a supermarket in The Shops at Atria in Mandurriao, Iloilo City; a supermarket in Central Bloc in Cebu City; and a department store and supermarket in Ayala Malls Feliz in Pasig City. Roderick L. Abad
To further cement its position as one of the country’s leading retail players, MRSGI recently announced its five-year plan to double the size of its network of establishments to 800,000 square meters (sq m) in terms of gross floor area.
“The dynamic Philippine retail industry continues to present a lot of opportunities for growth, and we are currently ahead of schedule in doubling our footprint by 2020 with 40 percent of this target already secured today,” Gaisano said.
This project could cost between P10 billion and P15 billion, which the company intends to finance via the equity market, internally generated funds, and loans.
MRSGI debuted at the Philippine Stock Exchange in November 2015, raising the largest new equity issuance for the year at P3.6 billion.
All the company’s stores are now present in key cities in Central, Western and Eastern Visayas, as well as in Central Luzon, Metro Manila, and South Luzon.