Virus-hit Metro Retail booked P449.6-M loss in 2020
Gaisano-led retailer Metro Retail Stores Group Inc. (MRSGI) was bludgeoned by the pandemic in 2020, but it has committed to continue expanding its footprint in anticipation of its return to profitability.
MRSGI booked a net loss of P449.6 million in 2020, a reversal of the P775.6-million net income recorded in the previous year.
With the pandemic prompting mobility restrictions, MRSGI’s net sales declined by 15 percent to P31.3 billion last year.
While the total food retail business increased by 1.1 percent, total general merchandise business declined by 45.7 percent due primarily to the temporary closure of department stores in March 2020.
Customer traffic
While the stores were gradually reopened, the general merchandise segment continued to face customer traffic constraints as community quarantine levels were still in effect and consumers prioritized purchasing essential goods, MRSGI reported.
The firm also closed unprofitable department store operations to prepare for better consolidation.
Blended same-store sales likewise declined by 19.3 percent last year, weighed down by the slump in sales of the general merchandise business.
On the expenditure side, MRSGI’s operating expenses fell by 8.3 percent to P6.8 billion, primarily due to disrupted operations of department stores. This, however, was offset by the recognition of a one-time cost provision of P270.2 million in connection with the streamlining of operations and rationalization of stores and workforce.
The company ended with a cash flow of P1.3 billion, while cash reserves of P2.3 billion were deemed sufficient to cover its current debt.
Despite the challenges in 2020, MRSGI said it remained “bullish” and was now looking forward to serving its customers in 2021 and the years beyond.
“We will continue to explore opportunities and innovate amid the rapidly evolving landscape so we can bring our brand of excellence to consumers across the country,” MRSGI president Manuel Alberto said.
MRSGI also reiterated its commitment to expand and strengthen its network. Last Jan. 29, flagship store Metro Ayala Cebu reopened while two new stores—Metro Danao and Metro Tacloban—opened last February and March, respectively.
