The Gaisano-led Metro Retail Stores Group, Inc. (MRSGI) said its sales increased by 11.3% to P36.8 billion in 2019, but its net income after tax decreased by 19.7% following the adoption of a new accounting standard.
In a statement issued on March 30, 2020, the company said it ended 2019 with an operating income of P1.063 billion, a 21.5% growth.
This was driven mainly by the increase in sales and a smaller increase of 9.3% in operating expenses.
Non-core income increased by P218.7 million mainly due to additional insurance recoveries, offset by the net impact of PFRS 16, which amounted to P363.7 million after tax for the full year of 2019.
PFRS 16 is a new accounting standard which aims to provide a basis to assess the effect of leasing activities on the entity’s balance sheet, income statement and cash flows. It took effect on January 1, 2019.
Net income after tax after these two significant adjustments amounted to a respectable P776 million, a decrease of 19.7% from the year-ago level.
Excluding the impact of PFRS 16, MRSGI’s operating income and net income would have increased by 13.7% and 18.0%, respectively.
Pre-PFRS 16 EBITDA on the other hand, remained robust at P2.07 billion up by 16.3% from 2018.
In its statement, the Gaisano-Led company said the push to increase its store network to serve emerging cities and municipalities in Visayas, Central Luzon and the Bicol region was vital to its strong performance.
Adding to the company’s optimistic outlook was the steady sales of its newly reopened Metro Supermarket at the Ayala Center Cebu in Cebu City.
Metro supermarkets, hypermarkets and pharmacies remain open for the duration of the enhanced community quarantine in Luzon, Cebu province, Negros Island and other areas in the country as a measure to stop the spread of the coronavirus disease (COVID-19).
“Metro remains resolute in heeding the call of government to serve the interests of its customers, employees and the general public amidst the challenges posed by the current national health situation,” the company said.
COVID-19 is a respiratory disease caused by the infectious novel coronavirus, or SARS-CoV-2.
In the Philippines, the Department of Health has confirmed 1,418 cases as of 4 p.m. March 29. Seventy-one patients had died while 42 have recovered. (Ventures Cebu)