METRO RETAIL Stores Group, Inc. (MRSGI) reported a 23.7% increase in net income in 2017, amid robust sales across all store formats.
In a regulatory filing, the Gaisano-led listed company said its profit stood at P977 million, higher than the P789 million recorded in 2016.
Net sales inched up 1.7% to P35.01 billion in 2017 from P34.4 billion in the prior year.
“The increase in net sales was primarily due to the opening of a new hypermarket and a new supermarket,” the company said, noting it ended the year with 52 stores.
MRSGI operates stores under the Metro Supermarket, Metro Department Store and Super Metro brands. As of end-2017, the company had 26 supermarkets, 12 department stores and 14 hypermarkets.
However, same-store sales fell by 0.7%, “due to lesser clearance sales events and rationalization of sales to resellers which were not profitable.”
MRSGI also reported operating expenses jumped by 5.9% to P6.59 billion last year.
“The increase in operating expenses was primarily due to an increase in salaries and wages, rental expenses, overhead expenses and depreciation expenses resulting from the opening of new stores. In addition, nonrecurring expenses were incurred in 2017 amounting to P88.4 million resulting from the planned closure of an unprofitable store in the first quarter of 2018,” MRSGI said.
The Gaisano-led company is targeting to double its 2015 gross floor area (GFA) by 2020. MRSGI already covered 566,494 sq.m. GFA or 71% of its target as of 2017.