Robinsons Retail net up 36%

GOKONGWEI-LED retailer Robinsons Retail Holdings Inc. (RRHI) posted a 36.2-percent year-on-year growth in its first semester net income to P1.86 billion on higher sales from its expanding store network and the rise in interest income on bond investments.

Core profits—which exclude the impact of foreign exchange volatility and RRHI’s income from its 40-percent stake in Robinsons Bank—grew by 11.1 percent year-on-year to P1.44 billion in the first semester.

RRHI, a multi-format retailer, reported that consolidated net sales in the first six months were up by 11.8 percent year-on-year to P41.35 billion, buoyed by sales contributed by 219 new stores and newly acquired businesses A.M. Builders’ Depot and Chavez Pharmacy.

Excluding the impact of newly opened outlets and new acquisitions, RRHI’s sales from its existing network of stores grew by 2.9 percent in the first six months from year-ago level.

For the second quarter alone, consolidated net sales went up by 10.7 percent year-on-year to P21.64 billion. Net profit for the three-month period ending June rose by 34.2 percent year-on-year to P1.08 billion.

From July 2014 to June 2015, RRHI added 219 stores to end the quarter with 1,399 stores in total, expanding gross floor area by 12.9 percent year-on-year to about 901,000 square meters.

Consolidated gross margin rose by 50 basis points to 21.8 percent for the first half which RRHI attributed to its growing scale, additional supplier discounts and the offering of additional value-added services.

“I am happy that same store sales have held up despite competition continuing to be intense. I am seeing a lot of promise from the new formats that we recently launched such as Costa Coffee, Robinsons Selections, and True Home by True Value. With this, we are emboldened to open more stores from these formats,” RRHI president Robina Gokongwei-Pe said in a press statement.

“Sales from our consumer electronics and appliance online business through a market place has been promising, which confirms that there is a growing market for this business. The industry’s dynamism will always keep us on our toes,” she said. Doris Dumlao-Abadilla