Metro Retail profit dips to P609M on expansion-related charges

LISTED retailer Metro Retail Stores Group, Inc. reported a 1.4% decline in net income to P609.42 million in 2024, attributed to expansion-related non-cash charges. 

“Due to non-cash charges driven by the company’s ongoing expansion program, net income for 2024 was flattish at P609.42 million compared to the prior year’s P618.02 million,” Metro Retail said in a regulatory filing on Wednesday. 

Net sales rose by 3.5% to P39.62 billion from P38.27 billion in 2023, driven by continued expansion initiatives and a 4.9% increase in the food retail business. 

Same-store sales inched up by 0.5% as the company scaled down low-margin wholesale transactions. 

Blended gross margin declined to 21.4% from 21.6% in 2023, led by efforts to unwind aging inventory earlier in the year and a slightly higher share of food retail sales in the overall mix. 

The operating expense-to-sales ratio stood at 19.5%, supported by cost control measures, including the increased adoption of solar panels in key locations. 

“In 2024, Metro Retail demonstrated its capability to achieve balanced growth. We expanded our network and increased net sales while maintaining a focus on operational efficiency,” Metro Retail President and Chief Operating Officer Manuel C. Alberto said. 

The company opened eight new branches in Samar, Negros, and Cebu, bringing its total store count to 71 as of end-2024. The new stores contributed to a 5.8% increase in sales from the Visayas region. 

Metro Retail also diversified its store formats with the launch of Metro Home Improvement and Lifestyle stores in Angeles, Pampanga; Hinigaran, Negros Occidental; and Catbalogan, Samar. 

The new format expands Metro Retail’s product offerings in home improvement and essentials, complementing its existing retail brands: Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart. 

Meanwhile, the company opened a new three-hectare distribution center in Sta. Rosa, Laguna, to support its Luzon operations and enhance its logistics network. 

The facility features high-efficiency storage, modern security systems, and solar panel-ready infrastructure, enabling future supply chain scalability. 

Metro Retail shares rose by 1.59% or two centavos to close at P1.28 apiece on Wednesday. — Revin Mikhael D. Ochave