Robinsons Retail nets 14% less to P2.4 billion

MANILA, Philippines — Robinsons Retail Holdings Inc., the Gokongwei-owned retail giant, reported a 13.9 percent decline in nine-month income to P2.4 billion.

Sales dropped by 5.7 percent to P109.6 billion.

In the third quarter alone, net income declined by 29.5 percent to P750 million as sales were down by 11.1 percent to P34.6 billion.

The company continued to weather the challenges of COVID-19 with its different formats affected by a temporary reversion to the modified enhanced community quarantine (MECQ) in Metro Manila and nearby provinces from Aug. 4 to 18.

Limited transportation and consumer mobility also affected foot traffic in malls.

RRHI president and CEO Robina Gokongwei Pe said the third quarter results give the company some optimism that the worst may have passed for the retail sector.

“Compared to the second quarter, we saw significant improvements in our results across the majority of our formats. We are hopeful that the uplift continues for the rest of the year. COVID-19’s impact on people, businesses, and the overall economy is still very much felt and apparent, and our year-on-year numbers remain down.

Yet we are seeing signs of recovery amidst an age of social distancing and safety precautions, and all of us are adapting to this new dynamic in retail. Through any disruption, we are committed to bringing the best products and services that we can to our customers,” she said.

Although they remain cautious, customers and businesses are adjusting to the new normal with safety measures implemented in stores.

Blended same store sales growth (SSSG) declined by 6.4 percent during the nine month period and negative 11.7 percent in the third quarter.

Supermarket SSSG was 11.5 percent for the nine month period and 2.1 percent in the third quarter, on the back of weaker consumer spending given the overall decline in disposable income.

On the other hand, drugstores, an essential format, registered positive SSSG of 3.5 percent. However, coming from a high base last year, the segment experienced a negative three percent SSSG in the third quarter, due to a drop in sales of prescription flu and anti-bacterial medicines.

The rest of the formats registered negative SSSG for the third quarter, but showed better performance compared to the second quarter.

Robinsons Retail ended September with 1,853 stores comprising 263 supermarkets, 49 department stores, 223 do-it-yourself stores, 481 convenience stores, 521 drugstores and 316 specialty stores. The total store count excludes the franchised stores of TGP.