Metro Retail First-Half Profit Jumps 45% on Store Expansion and Margin Gains

Metro Retail Stores Group Inc. (MRSGI) grew its first-half net income after tax by 45%, the Philippine retailer said, citing store expansion, renovations and sharper assortment curation as key contributors. Second-quarter net income rose 40.3% from a year earlier.

Consolidated net sales for the six months ended June increased 3.1% to $315.34 million (P19.36 billion), while comparable store sales edged up 0.2%. Food retail sales advanced 3.8% and general merchandise sales grew 1.2%.

Gross profit margin improved to 22.6% from 21.8% a year earlier, driven by margin gains in both food retail and general merchandise as well as an improved sales mix. Operating expenses increased 4.8%, reflecting inflationary overhead and costs related to new store openings.

Operating income consequently rose 22.8% to $5.53 million (P339.4 million). MRSGI expanded its Visayas footprint with new locations in Naval, Biliran, as well as Lapu-Lapu City and Mandaue City in Cebu, bringing its total store network to 84 across Luzon and the Visayas.