Robinsons Retail Holdings Inc. (RRHI) registered P1.16 billion in net income during the third quarter of 2015, up 8 percent from P1.07 billion a year earlier.
Net sales advanced by 14 percent to P21.9 billion from P19.2 billion, and operating income improved by 4.6 percent to P1.13 billion from P1.08 billion.
Across its retail formats, RRHI’s same store sales remained robust as same supermarket sales rose by 4.1 percent, department stores by 7.9 percent, do-it-yourself (DIY) stores by 5.5 percent, convenience stores by 6.7 percent, drugstores by 5.4 percent, and specialty stores by 10.6 percent.
A strong turnover from new and existing stores buoyed the RRHI’s net income by 18 percent to P3.11 billion in January to September from P2.62 billion in the same period last year.
In a statement, the company said net sales grew by 12 percent to P63.28 billion from P56.17 billion in the same comparable period. Operating income went up 6 percent to P3.1 billion from P2.9 billion.
Higher sales in January to September were attributed to the contribution of new stores, same store sales growth of 3.8 percent, as well as the share of newly acquired businesses A.M. Builders’ Depot, Chavez Pharmacy, and Saver’s Appliance Depot.
The retailer added 208 stores in October 2014 to September 2015 which raised stores to 1,466. The expansion translated to a 10.7 percent improvement in gross floor area (GFA) to about 939,000 square meters.
“The lower number of store additions of 208 (versus 276 in the same period last year) and smaller GFA growth (from 19.9 percent last year) arise from the rationalization of some brands this year, and the closure of non-performing stores,” the company said.
“We foresee the retail environment to continue to experience intense competition with the consolidation of industry players. We will continue to take advantage of opportunities to participate in the industry’s consolidation, similar to our acquisition of 90 percent of Saver’s Appliance Depot, one of the top 10 consumer electronics and home appliances players in the country,” Robina Gokongwei-Pe, president and chief operating officer of RRHI, said.
“We continue to be optimistic in the country’s retail environment as the growing economy would translate to more Filipinos having higher disposable incomes and thus increasing discretionary spending,” she added.
This year, the company aims to grow its margins by 20 percent to 40 percent and same store sales by 2 percent to 3 percent.
RRHI already spent P2.34 billion of its P6 billion expansion budget for the year to open 350 stores and grow its network by 1,600 by year end.
The company’s retail brands include Robinsons Supermarket, Robinsons Easymart, Robinsons Selection, Handyman Do it Best, A.M. Builders’ Depot, True Value, Topshop, Topman, Shiseido, Benefit, Toys “R” Us, Daiso Japan, Ministop, Costa Coffee and South Star drug store chain.
KRISTYN NIKA M. LAZO