LISTED retailer Metro Retail Stores Group, Inc. reported a 1.4% decline in net income to P609.42 million in 2024, attributed to expansion-related non-cash charges.
“Resulting from non-cash charges driven by the corporate’s ongoing expansion program, net income for 2024 was flattish at P609.42 million in comparison with the prior 12 months’s P618.02 million,” Metro Retail said in a regulatory filing on Wednesday.
Net sales rose by 3.5% to P39.62 billion from P38.27 billion in 2023, driven by continued expansion initiatives and a 4.9% increase within the food retail business.
Same-store sales inched up by 0.5% as the corporate scaled down low-margin wholesale transactions.
Blended gross margin declined to 21.4% from 21.6% in 2023, led by efforts to unwind aging inventory earlier within the 12 months and a rather higher share of food retail sales in the general mix.
The operating expense-to-sales ratio stood at 19.5%, supported by cost control measures, including the increased adoption of solar panels in key locations.
“In 2024, Metro Retail demonstrated its capability to attain balanced growth. We expanded our network and increased net sales while maintaining a give attention to operational efficiency,” Metro Retail President and Chief Operating Officer Manuel C. Alberto said.
The corporate opened eight recent branches in Samar, Negros, and Cebu, bringing its total store count to 71 as of end-2024. The brand new stores contributed to a 5.8% increase in sales from the Visayas region.
Metro Retail also diversified its store formats with the launch of Metro Home Improvement and Lifestyle stores in Angeles, Pampanga; Hinigaran, Negros Occidental; and Catbalogan, Samar.
The brand new format expands Metro Retail’s product offerings in home improvement and essentials, complementing its existing retail brands: Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart.
Meanwhile, the corporate opened a brand new three-hectare distribution center in Sta. Rosa, Laguna, to support its Luzon operations and enhance its logistics network.
The power features high-efficiency storage, modern security systems, and solar panel-ready infrastructure, enabling future supply chain scalability.
Metro Retail shares rose by 1.59% or two centavos to shut at P1.28 apiece on Wednesday. — Revin Mikhael D. Ochave
