Robinsons Retail Q1 income drops 85% to P760M amid high base effect
ROBINSONS RETAIL HOLDINGS, Inc. (RRHI), the retail arm of the Gokongwei group, reported an 85% decline in attributable net income for the first quarter, falling to P760 million from P5.08 billion in the same period last year, primarily due to a high base effect from a one-time gain related to the merger of Bank of the Philippine Islands (BPI) and Robinsons Bank Corp. (RBC).
Consolidated net sales rose 4.2% year-on-year to P47.8 billion, with growth driven by the food, drugstore, and department store segments, RRHI said in a regulatory filing on Tuesday.
“Revenues were also supported by new store sales and additional operating days, following the shift in the Holy Week holidays to April this year from March in 2024. These factors helped offset the impact of fewer selling days in February, as 2024 was a leap year,” RRHI said.
Gross profit grew by 6.2% to P11.59 billion, driven by a favorable category mix, continued supplier support, and improved inventory management. Core earnings increased 4.9% to P1.2 billion, largely due to lower interest expenses.
Operating income also saw an increase, rising 2.7% to P1.94 billion, although this was partly offset by higher labor expenses from the full-quarter impact of wage hikes last year and one-time costs related to improvements in the employee benefits program.
Blended same-store sales growth stood at 3%, meeting the company’s full-year guidance of 2-4%, RRHI said.
“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,” said Stanley C. Co, RRHI’s president and chief executive officer.
“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.
Total assets as of March 31 amounted to P168.9 billion, with capital expenditure for the quarter reaching P962 million.
Total liabilities decreased to P72.2 billion from P77.3 billion as of December 31, 2023.
As of March 31, RRHI operated 2,448 stores, comprising 760 food stores, 1,131 drugstores, 50 department stores, 225 DIY stores, and 282 specialty stores. It also operates 2,116 franchised stores under The Generics Pharmacy brand.
RRHI shares closed down by 0.25%, or 10 centavos, at P39.20 on Tuesday. — Revin Mikhael D. Ochave
