Metro Retail Ends 2022 with Impressive Sales and Net Income of PhP917 Million

Metro Retail Stores Group, Inc. (MRSGI) had an outstanding year in 2022, as the company’s sales and net income exceeded pre-pandemic levels. MRSGI demonstrated marked efficiency gains, and its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) doubled in growth. These achievements were possible due to the economic recovery in the country, which led to a significant turnaround from a pandemic-driven loss in 2021 to a net income of PhP917.3 million in 2022. Furthermore, the 2022 net income surpassed the pre-pandemic earnings by 18.3%.

MRSGI’s success can be attributed to robust consumer spending during the holiday season, resulting in record sales in the fourth quarter, bringing the annual sales to PhP38.1 billion in 2022, a 22.1% increase from PhP31.2 billion in 2021. MRSGI’s store traffic also continued to recover, resulting in a 19.2% blended same-store sales growth in 2022.

Despite price pressures and supply chain challenges, the full reopening of businesses and improvement in labor market conditions primarily drove the growth in consumer confidence since the pandemic. As a result, MRSGI’s general merchandise business climbed by 54.3% from the same period last year, while food retail was up by 13.1%.

MRSGI was able to improve its gross margin and operating efficiency, resulting in a 230 basis point increase in its blended gross margin from 18.8% in 2021 to 21.1% in 2022. Moreover, the Company reported an improvement in its operating expense-to-sales ratio of 18.1% in 2022 versus 19.1% a year ago.

Underpinned by the improved gross margin and operating efficiency, MRSGI doubled its EBITDA to reach PhP2.7 billion (7.1% of sales) in 2022 compared to PhP1.2 billion (3.8% of sales) in 2021. The Company remained in a strong cash and liquidity position at PhP5.2 billion, while the bank debt level was manageable at PhP3.0 billion.

In 2022, MRSGI added two new supermarkets, ending the year with 62 stores. The company also broke ground and started the construction of its mega distribution center in Sta. Rosa, Laguna, to support its current and future network. Furthermore, MRSGI launched several new projects in its store expansion pipeline in strategic areas across Luzon and Visayas.

On March 31, 2023, the Board of Directors of MRSGI approved the distribution of cash dividends amounting to PhP196.1 million, equivalent to PhP0.06 per share.

According to MRSGI President and COO Manuel Alberto, “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. 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.”