Cebu-based retailer Metro Retail Stores Group, Inc. (MRSGI) posted a net loss of P421.87 million in the nine months of 2020, a reversal of the P398.19 million net income recorded in the same period last year.
The net loss is driven by 12.1% decline in revenue to P22.22 billion from the previous P25.28 billion as MRSGI’s general merchandise business dipped by 47.1% against the same period last year, reeling from the impact of the pandemic and relate disruptions on consumer spending and customer traffic.
Blended same store sales likewise contracted by 16.6% over the same period last year due to the decline in sales of the general merchandise business. Notwithstanding the foregoing, EBITDA (earnings before interest, taxes, and depreciation & amortization) as of end-September remained solid at P1.10 billion.
To respond to the drastic market shifts and to position the company for the next normal, MRSGI President and Chief Operating Officer Manuel Alberto noted that the retailer will not only focus on stabilising the business but more importantly, on making the right investments that will allow the company to be more competitive in the future.
“Given the changes in the retail landscape, we will head towards transforming MRSGI into an organisation that is resilient, relevant, and responsive to the changing consumer dynamics,” Alberto said.
Over the next 12 months, transformation efforts will include increasing marketing reach in both digital and physical channels, optimising costs by streamlining operations, rationalising store network, and undertaking a workforce rationalisation and rightsizing program. These moves are intended to improve profitability and merchandise reach.
In this regard, the company recognised provisions pertaining to estiamted non-recurring expenses in connection with its streamlining of opreations and rationalisation of stores and workforce amounting to P396.4 million.
Meanwhile, sales of the company’s food retail business grew by 5% over the same period last year due to increased demand resulting from enhanced focus on supermarket stocks and quarantine measures. – BusinessNewsAsia.com