Metro Retail Posts PHP50 Million Net Income in Q1 2024, Maintains Positive Outlook

Despite experiencing a dip compared to its Q1 2023 net income, Metro Retail remains poised for positive growth and continued expansion.

Metro Retail (Metro Retail Stores Group, Inc.) posted a net income of PHP 50.3 million for the first quarter of 2024. This represents a 16% drop from the PHP 60 million earned last year in the same period by the retail company. MRSGI operates 64 general merchandise stores, including department stores, groceries, and convenience stores around the nation. The company explained that a lower share to business of general merchandise was responsible for narrower margins.

Positive Signs

Metro Retail approaches its outlook for 2024 with “cautious optimism” thanks to a number of positive signs.

The company’s net sales grew 4.8% to PHP 8.7 billion from PHP8.3 billion in the first quarter of 2023, which is MRSGI’s highest first-quarter sales since 2015. Store sales in the Q1 2024 also increased by 2.8% year-on-year.

Bright spots also appeared in the various businesses MRSGI operates in. Backed by strong sales of groceries, food retail increased by 7.9% compared to the previous year. However general merchandise decreased slightly by 2.9% due to spending constraints caused by high inflation.

On the operations side, MRSGI’s efficiency improved with the success of its cost-saving initiatives, reducing the operating expense to sales ratio to 20.4% in the first three months of 2024.

Financially, the company cash position remained strong at PHP 3.2 billion. It also managed to keep a low level of bank debt-to-equity ratio at 0.30.

MRSGI President and COO Manuel Alberto

During MRSGI’s stockholders’ meeting, Manuel Alberto, President and COO, said, “Looking ahead to 2024, we are poised for growth with cautious optimism. Our strategic plans are geared towards calibrated expansion, enhancing our online presence, and continuing to modernize our stores.”

Continued Expansion

The calibrated expansion Alberto spoke of is embodied by the steps it has taken towards increasing its presence in the Visayas. It has opened five key supermarkets in Cebu and Leyte. Metro Retail has also opened a Metro Value Mart in Lapu-Lapu City, bringing the total number of its stores in its network to 64.

About Metro Retail

The Metro Retail Stores Group, Inc. (MRSGI) was founded by Victor and Sally Gaisano in 1982. The company began as Gaisano Metro Department Store and Supermarket and later became Metro Gaisano. The success of Metro Retail is attributed to the core values and culture instilled by its founder Victor Gaisano.

Metro Retail is based in Mandaue City. It operates a total of 64 branches across Luzon and the Visayas under various store formats, such as Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart. 

A focus of MRSGI is online shopping through shopmetro.ph. With its digital store, customers can choose between home delivery or pick-up at the nearest Metro Store.