Metro Retail Stores Group, Inc. (MRSGI) achieved growth of 4.2% in net sales for the first nine months of 2024 at P27.6 billion versus P26.5 billion in 2023, reflecting modest but sustained contributions from the company’s existing network and its continued store expansion efforts.
Third-quarter net sales remained stable at P9.56 billion amid lingering inflationary pressures and cautious consumer spending.
“The results of our first nine months with sustained cash earnings reflect the Company’s resilience as we navigate the evolving retail landscape,” said MRSGI president and COO Manuel Alberto. “Moving into the final quarter, we remain focused on adapting to market conditions, finding new strategic opportunities, and realigning our priorities to ensure we end the year on a more positive note and to gain momentum for 2025.”
Blended same-store sales for the nine months increased by 1.5% compared to last year, driven by food retail, which grew by 5.8% in the first nine months of 2024, while general merchandise dipped slightly by 1.2%.
Gross margin in the first nine months of 2024 was slightly lower at 21.1% from 21.7% a year ago as the company cleaned up aging stocks. However, the company realized a decrease in operating expense to sales ratio from 20.5% last year to 20.2% in 2024 through tighter cost control and efficiency measures, which included more significant use of solar panels in key locations.
As a result, MRSGI’s cash earnings (earnings before interest, taxes, depreciation, and amortization or EBITDA) for the nine months remained relatively stable at P1.29 billion.
Due to increases in non-cash charges associated with the company’s expansion program, net income in the first nine months of 2024 declined by 19.6% to P204.7 million from P254.6 million in the prior year period.
MRSGI recently opened five stores in the provinces of Samar, Leyte, and Cebu in the last two months, increasing the company’s network size to 69 stores and registering encouraging sales trends in these new locations. The company also continued to grow its home retail footprint.
