Gaisano-led Metro Retail Stores Group Inc. (MRSGI), the largest retailer in the Visayas, booked a 24-percent year-on-year growth in net profit to P262 million on higher earnings from its expanding store network.
For the six months ended June, net sales rose by 8 percent year-on-year to P15.91 billion, largely due to the increase in sales as a result of opening a new store during the second half of 2015 and three new stores in 2016. Same store sales grew by 5 percent.
The six-month performance was fueled by the
14.7-percent growth of the hypermarket segment.
MRSGI also generated higher rental income during the period.
Six-month rental income surged by 105.9 percent year-on-year to P138.6 million for the first semester.
Outside of operating income, interest and other income rose by 181.4 percent year-on-year to P83.3 million, primarily due to the increase in cash balances of bank accounts maintained by the company for working capital requirements and interest income from short term investments and cash equivalents arising from the proceeds of the initial public offering conducted in late 2015.
“Despite challenging conditions, we are encouraged by our bottom line and same store sales growth led by our hypermarket format. This was achieved by our familiarity with the Visayas region and the markets that we serve,” MRSGI chair and chief executive officer Frank Gaisano said in a press statement.
Gaisano added that the company continued to strengthen its position in Visayas by capitalizing on its existing locations and adding new stores in prime locations.
MRSGI is investing more than P10 billion for its five-year plan to double the size of its network of stores to 800,000 square meters in terms of gross floor area (GFA).