CEBU-BASED retailer Metro Retail Stores Group Inc. (MRSGI) ended 2019 with the company’s operating income of P1.063 billion posting a growth of 21.5 percent.
The growth was driven mainly by the 11.3 percent increase in sales to P36.8 billion and a lower level of increase in operating expenses at 9.3 percent.
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 percent from the year-ago level.
Excluding the impact of PFRS 16, MRSGI’s operating income and net income would have increased by 13.7 percent and 18.0 percent, respectively. Pre-PFRS 16 EBITDA, on the other hand, remained robust at P2.07 billion up by 16.3 percent from 2018.
MRSGI’s push to increase its store network to serve emerging cities and municipalities in Visayas, Central Luzon and the Bicol region was vital to the homegrown retailer’s strong performance. Adding to the company’s optimistic outlook is the steady sales of its newly re-opened Metro Supermarket located at its Cebu flagship store.
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’s supermarkets, hypermarkets and pharmacies remain open to provide much-needed basic goods and services as the Philippines grapples with the Covid-19 outbreak. (PR)