Metro Retail net falls by 87%

Cebu-based retailer Metro Retail Stores Group Inc.’s (MRSGI) first-quarter profit slid by 87.3 percent year-on-year to P7.98 million as the COVID-19 pandemic-related lockdown hampered its department store operations while insurance recovery gains tapered from last year. MRSGI’s operating income for the first quarter, however, turned positive at P23.45 million from an operating loss of P741,767 a year ago, the company told the Philippine Stock Exchange.

This was driven mainly by a 10-percent rise in revenue, which outpaced the 4.6-percent growth in expenses. Expenses declined as a result of disrupted operations due to the lockdown.

Gross margin percentage to sales fell by 89 basis points on account of higher share to business of food retail, slower department store sales and compliance with government-imposed pricing protocols. Still, total margin for the period grew by 5.3 percent. MRSGI incurred P10.6 million in nonoperating charges, a reversal of the nonoperating income of P86.8 million a year ago. This was due to the last tranche of insurance recovery, which was down to P104.4 million from P190.5 million a year ago. Insurance gains represent recovery of losses from a 2018 fire in a store in Cebu. —Doris Dumlao-Abadilla INQ