Retail Sales Drive Up Robinsons Retail's Earnings in First Three Months of 2024

Consumers are still spending on everyday goods despite the effects of high inflation in the country. This is evident in the earnings of the Gokongwei-owned Robinsons Retail Holdings, Inc. (RRHI), which saw an increase of 2.9 percent to P45.9 billion in the first quarter of 2024. The growth, said to be driven by higher sales from new stores and sustained demand in the food retail and drugstores segments, accounted for more than 80 percent of the business.

RRHI did note that its business did not escape the impact of Holy Week—which fell in March this year—as the two-day closure of its non-essential stores impacted its earnings. But it seems it was not that hard for the company to bounce back and grow its gross profit and operating income “faster than the topline.”

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The Gokongwei family’s retail empire runs a total of 2,399 stores across the country. Among these are 756 food segment stores, 1,072 drugstores, 297 specialty stores, 224 DIY stores, and 50 department stores. Robinsons Retail also operates over 2,100 franchised stores of The Generic Pharmacy (TGP).

The company said its gross profit grew by 3.6 percent to P10.9 billion, and its operating income by 3.4 percent to P1.9 billion. These were attributed to improvements in the category mix, penetration of imported products, as well as supplier support.

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

But like any other business, there may be external headwinds, such as the continuing tensions in the Middle East that may further drive up commodity prices.

"Therefore, we will persist in implementing strategies to differentiate ourselves,” said Gokongwei-Pe. “Cost controls also remain a priority, and the savings we generate will be reinvested back into the business to further drive growth.”

Overall, RRHI's core net earnings rose to P1.2 billion in the first three months of 2024, marking an expansion of 8.5 percent year-on-year.

According to the company, the amount did not include their foreign exchange gains and losses, interest income from bonds; equity in earnings from associates; and interest expenses related to the acquisition financing of the Bank of the Philippine Islands (BPI) shares; among others.

RRHI is a member of the Gokongwei Group, as is Summit Media, which publishes Esquire Philippines.