Robinsons Retail Holdings, Inc. (RRHI) posted net income of PHP 5.2 billion for the first quarter, up 663% year over year, as the merger of Bank of the Philippine Islands (BPI) and Robinsons Bank Corporation (RBC) closed earlier in the year.

Net income attributable to equity holders of the parent company was reported at came PHP 5.1 billion, 9.5 times higher compared to the first quarter of 2023. Earnings per share also leapt to PHP 3.49 from PHP 0.39 in the same period in 2023, RRHI said in a disclosure to the Philippine Stock Exchange.

The company reiterated that the increase was the result of a one-time gain from the completion of the the merger of BPI and RBC, which closed earlier in the year. The merger was approved by the Securities and Exchange Commission (SEC) of the Philippines, and officially took effect on January 1.

RRHI reported core net earnings, which excluded the one-time gain from the merger, among other items, of PHP 1.2 billion for the quarter, up 8.5% year over year. 

The company’s operating income increased 3.4% to PHP 1.9 billion, while gross profit rose 3.6% to PHP 10.9 billion, “underpinned by category mix improvements, higher penetration of imported products, and increased supplier support,” RRHI said.

The retailer’s consolidated net sales grew 2.9% to PHP 45.9 billion in the first quarter, driven by incremental sales from new stores and sustained demand in the food retail and drugstore segments, which it said accounted for more than 80% of its business. 

“We are optimistic that an acceleration in our top line is underway as we continue to open stores and see improved consumption trends aided by inflation reverting to the government’s target range,” RRHI President and CEO Robina Gokongwei-Pe said. 

“We are, however, also mindful of external headwinds to our business. Escalating tensions in the Middle East, which may drive commodity prices higher and emerging competition from new formats present additional challenges. Therefore, we will persist in implementing strategies to differentiate ourselves, which include offering the most relevant products and services to our target market and providing an exceptional shopping experience through ambient enhancements,” Gokongwei-Pe continued.

“Cost controls also remain a priority and the savings we generate will be reinvested back into the business to further drive growth,” she stated. 

According to an earlier statement from BPI, the merger “will unlock various synergies across several products and service platforms and expand the customer and deposit base of both banks through the merged entity.” 

RBC has 189 branches and branch-lite units, including 14 branches and 14 branch-lite units of its subsidiary Legazpi Savings Bank. It also has 354 ATMs and online and mobile banking channels. As of June 30, 2022, RBC had total assets of PHP 175.9 billion, including net loans and receivables of PHP 102.4 billion, and total liabilities of PHP 156.0 billion, including deposits of PHP 139.0 billion.

As of March 31, RRHI operated a total of 2,399 stores consisting of 756 food segment stores, 1,072 drugstores, 50 department stores, 224 DIY stores, and 297 specialty stores. The company has six wholly-owned subsidiaries and 16 partially-owned subsidiaries which include Robinson’s Supermarket Corporation; Robinson’s Handyman, Inc.; Robinsons Appliances Corp.; and Robinsons Convenience Stores, Inc.