Robinsons Retail Q1 Core Earnings Climb to P1.2 Billion
Robinsons Retail Holdings, Inc.’s (RRHI) core earnings climbed by 4.9 percent to P1.2 billion year-on-year in the first quarter of the year due to lower interest expenses.
The Gokongwei group retail arm also saw its gross profit grow by 6.2 percent to P11.59 billion due to a favorable category mix, consistent supplier support, and a boost in inventory management, according to a statement by RRHI. Consolidated net sales also saw an increase of 4.2 percent year-on-year to P47.8 billion due to the performance in food, drugstore, and department store segments.
The company’s operating income also rose by 2.7 percent to P1.9 billion which was in part offset by costlier labor expenses from the quarterly impace of wage hikes in the past year and expenses linked to strides in the employee benefits program.
Blended same-store sales growth this quarter was at 3.0 percent, which was within the RRHI’s full-year guidance of 2-4 percent
ALSO READ
Robinsons Retail Posts Strong 2024 Performance
Retail Sales Drive Up Robinsons Retail's Earnings in First Three Months of 2024
“This year is off to a strong start, with the ongoing recovery in basket sizes continuing to drive revenue growth. To sustain this momentum, we will further optimize our assortment, accelerate store expansion, and unlock greater operational efficiencies,” RRHI President and Chief Executive Officer Stanley C. Co said.
“As we navigate the dynamic retail environment, we remain focused on creating long-term value for our stakeholders by strengthening our fundamentals and advancing our sustainability agendas,” he added.
RRHI’s total assets as of March 31 amounted to P168.9 billion, with a cash balance of P9.1 billion. Capital expenditures during the quarter also reached P962 million. Total liabilities also slipped to P72.2 billion from P77.3 billion at the end of December last year as the company continues to pay down its payables. Stockholder equity also stood at P96.7 billion during the period.
Despite the improvements, RRHI reported a 85 percent drop in its attributable net income for in the first quarter, with a decline to P760 million fro P5.08 billion in the same period last year. This was attributed to a high base effect from a one-time gain in connection with a merger between Bank of hte Philippine Islands (BPO) and Robinsons Bank Corp. (RBC) early last year.
RRHI handles 2,448 stores which, broken down, is made up of 760 food establishments, 1,131 drugsores, 50 department stores, 225 do-it-yourself stores, and 282 specialty stores. RRHI also has 2,116 franchised TGP (The Generics Pharmacy) stores.
