UMVA has learned that Metro Retail Stores Group, Inc. (MRSGI) has achieved a remarkable surge in its first-quarter (Q1) financials, with a staggering 92.54% increase in net income to P25.8 million from P13.4 million a year earlier.
The boost in earnings was driven by higher sales and improved margins, marking a significant shift in the company's fortunes. Consolidated net sales rose 5.39% to P9.38 billion from P8.9 billion a year earlier, a testament to the company's commitment to growth and expansion.
Food retail emerged as the primary growth driver, with sales in this segment rising 6.3%. General merchandise sales increased 2.5%, while same-store sales grew 2.9%, indicating a strong performance across various core categories.
"We delivered a steady start to 2026, supported by continued sales growth and improved margins across our core categories," said MRSGI President and Chief Operating Officer Joselito G. Orense. His words reflect the company's sustained efforts to build scale and expand its reach nationwide.
One of the key factors behind the improvement in gross margin was a more favorable product mix and stronger food retail performance, which resulted in a margin of 21.7% compared to 21.3% a year earlier. Meanwhile, operating expenses rose 6.6% to P2.15 billion as the company expanded and renovated stores and scaled up its network.
Despite the increase in expenses, earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 14.9% to P474.7 million, a clear indication of the company's ability to manage costs effectively. The company also made significant strides in expanding its in-store offerings through new partnerships, including the pilot rollout of Generika Drugstore branches in selected Metro Retail locations.
The first two pilot branches opened in Ayala Feliz and Tagaytay, with about a dozen more stores scheduled for rollout by yearend. As Metro Retail continues to expand its network, it operates 81 branches across Luzon and the Visayas under various formats, including Metro Supermarket, Metro Department Store, Super Metro Hypermarket, Metro Value Mart, and Metro Home and Lifestyle.
