Inflation pulled down Metro Retail’s Q1 profit to P50.3M

MANILA, Philippines — The rise in consumer prices hit the first-quarter performance of Metro Retail Stores Group Inc. (MRSGI), registering a 16-percent dip.

On Monday, the listed company reported its net income fell to P50.3 million in the first three months from P60 million in the same period a year ago. It, however, remains optimistic about potential growth this year.

MRSGI attributed the weaker bottom-line figures to a “lower share to the business of general merchandise.”

“General merchandise edged down by 2.9 percent amid the spending constraint on discretionary items due to persistent high inflation,” it explained.

READ: Metro Retail pursues five-year expansion in Luzon

Earnings before interest, taxes, depreciation, and amortization slipped 5.1 percent to P389.2 million.

Despite the dip, MRSGI president and chief operating officer Manuel Alberto said they were “poised for growth with cautious optimism.”

“Our strategic plans are geared toward calibrated expansion, enhancing our online presence, and continuing to modernize our stores,” he added.

In January, the company opened its Metro Value Mart in Lapu-Lapu City, bringing its store count to 64.

It held ground-breaking ceremonies for five supermarkets in Cebu and Leyte as part of MRSGI’s Visayas expansion plan.

The company also recently inaugurated a 10-hectare distribution center in Sta. Rosa, Laguna to improve its logistics system.

MRSGI’s store formats are Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart.

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