The Gaisano-led Metro Retail Stores Group, Inc. (MRSGI) said it has rebounded to post a net income of P917.3 million in 2022, surpassing by 18.3% its pre-pandemic earnings of P775.6 million in 2019.
The company cited the robust consumer spending during the holiday season and growing consumer confidence following the lifting of most pandemic restrictions. These helped MRSGI bounce back from a loss of P318.1 million in 2021.
Despite the high inflation and supply chain challenges, MRSGI said it generated sales of P38.1 billion in 2022, 22.1% higher than the P31.2 billion sales in 2021. MRSGI’s store traffic continued to recover resulting in a 19.2% blended same-store sales growth in 2022.
“The year 2022 was indeed a breakthrough year for Metro Retail. Along with the company’s celebration of its 40th year in the industry, MRSGI was able to display its resilience – registering consistent encouraging performance across all quarters and ultimately closing the year with positive results," said MRSGI president and COO Manuel Alberto.
"MRSGI marked this year as its leap from the net loss incurred during the pandemic to delivering a buoyant financial outcome. And we look forward to sustaining this growth in the coming years,” he added.
As of end-2022, MRSGI has 62 stores nationwide. It has also started the construction of its mega distribution center in Sta. Rosa, Laguna.
The company said its general merchandise business surged 54.3% while food retail was up by 13.1% year on year, pushing the company's blended gross margin to 21.1% in 2022 from 18.8% in the previous year.
The company also reported an improvement in its operating expense-to-sales ratio to 18.1% in 2022 from 19.1% a year ago.
With the improved gross margin and operating efficiency, MRSGI doubled its earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach P2.7 billion (7.1% of sales) in 2022 from P1.2 billion (3.8% of sales) in 2021.
The company also reported a strong cash and liquidity position at P5.2 billion, while bank debt level was manageable at P3 billion.
MRSGI earlier approved the distribution of cash dividends amounting to P196.1 million, equivalent to P0.06 per share. (MVI/Ventures Cebu)