Metro Retail income up 53%, nets P401M

CEBU, Philippines - Cebu retail giant Metro Retail Stores Group Inc. said yesterday its net income in the first half of 2017 grew 53 percent to P401 million, buoyed by the strong domestic consumption.

In a disclosure to the Philippine Stock Exchange on Thursday, the Gaisano-led retailer said its sales increased 3.3 percent to P16.4 billion during the period.

Chairman and CEO Frank Gaisano said: “This shows that our expanding market coverage continues to improve our underlying consumer business, backed by our investments in operational and merchandising efficiencies that further resulted to stronger margins and earnings growth."

Gaisano said that strong domestic consumption and the growth of the country’s economy "will continue to be a boon to the retail sector."

“We will continue to leverage on the opportunities this presents and make targeted investments throughout the balance of this fiscal year in order to achieve a stronger brand presence for Metro that will benefit more consumers and our stakeholders," the CEO said.

The company had advanced its expansion plan by recently opening its 52nd store in Tagaytay located in South Luzon on the heels of another newly opened establishment in Canduman, Mandaue City, Cebu.

The listed retail firm is further strengthening its presence in the Visayas region with the recent groundbreaking of three new stores in primary commercial hubs in Central and Eastern Visayas.

To date, the retailer now operates 52 stores in Central, Western and Eastern Visayas as well as in Central Luzon, Metro Manila and South Luzon, with three store formats namely department store, supermarket and hypermarket.

Metro Retail shares opened higher at P4.09 apiece in yesterday's trading.

The strong consumer spending and high consumer confidence have been cited to continue to bode well for the retail market.

Personal consumption spending continues to lift the overall growth of the economy. In 2016, household spending, which accounts for nearly 70 percent of the Philippine economy, increased by 6.9 percent.

Spending is fueled, among others, by remittances from overseas Filipino workers (OFWs), the BPO industry and the rising incomes of Filipinos.

In Cebu, major retail establishments have been developed, responding to the robust retail demand. Cebu City remains a bright spot for retailers as consumer spending continues to drive the province’s economic growth. (FREEMAN)