Store openings, lower costs boost RRHI earnings in H1 to P 2.6B

The first semester core earnings of supermarket and specialty retailer Robinsons Retail Holdings Inc. (RRHI) jumped by 12.1 percent to P2.6 billion on higher sales in various segments.

This does not include the one-time gain from the merger of Robinsons Bank with Ayala-led Bank of the Philippine Islands (BPI) that resulted in RRHI’s net income during the period ballooning by nearly four times to P6.8 billion.

BPI officially took over Robinsons Bank in January via a P32-billion deal.

READ: Co new RRHI CEO; Gokongwei-Pe moves up

The Gokongwei-led company said in a stock exchange filing on Tuesday that net sales grew by 3 percent to P93.71 billion on increases in the food, drugstore and department store segments.

Meanwhile, operating income was up by 5.5 percent to P4.1 billion.

“We continue to generate earnings growth by focusing on controllable factors, such as opening stores in strategic locations, enhancing our merchandise mix, and streamlining costs,” RRHI president and CEO Robina Gokongwei-Pe said.

“We are confident that we can sustain the earnings momentum in the latter half of the year as we accelerate store openings, while moderating inflation should be a boon for consumer spending,” Gokongwei-Pe added.

In the second quarter alone, core net income increased by 15.3 percent to P1.46 billion. Net sales had a modest 3.1-percent growth to P47.82 billion.

READ: Robinsons Retail 2022 net income hits P5.74B

As of end-June, RRHI had a total of 2,401 stores composed of 755 food stores, 1,082 drugstores, 49 department stores, 224 do-it-yourself stores, and 291 specialty stores.

It also has 2,100 franchised stores of The Generics Pharmacy in its portfolio.

Earlier this month, RRHI announced that its chief operating officer, Stanley Co, will replace Gokongwei-Pe as the company’s president and CEO by Jan. 1, 2025.

Gokongwei-Pe will move up as chair, replacing her brother, Lance Gokongwei, who will remain as board adviser. INQ

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