PUBLICLY LISTED retailer Metro Retail Stores Group, Inc. announced a 1.4% reduction in net earnings to P609.42 million for 2024, due to non-cash expenses related to company expansion.
“As a result of non-cash expenses linked to the firm’s ongoing growth initiatives, the net earnings for 2024 remained relatively stable at P609.42 million compared to P618.02 million from the previous year,” stated Metro Retail in a regulatory announcement on Wednesday.
Net revenues increased by 3.5% reaching P39.62 billion, up from P38.27 billion in 2023, fueled by ongoing expansion efforts and a 4.9% rise in the food retail segment.
Sales from existing stores grew by 0.5% as the company minimized low-margin wholesale dealings.
The overall gross margin fell to 21.4% from 21.6% in 2023, influenced by actions taken to reduce older inventory earlier this year and a slightly higher proportion of food retail sales within the total mix.
The operating expenses relative to sales stood at 19.5%, aided by cost management strategies, including greater utilization of solar panels at strategic locations.
“In 2024, Metro Retail exhibited its ability to secure balanced growth. We broadened our network and elevated net revenues while upholding a commitment to operational effectiveness,” remarked Metro Retail President and Chief Operating Officer Manuel C. Alberto.
The corporation launched eight new locations in Samar, Negros, and Cebu, increasing its total store count to 71 by the end of 2024. These new outlets contributed to a 5.8% rise in sales from the Visayas region.
Metro Retail also diversified its store formats with the introduction of Metro Home Improvement and Lifestyle outlets located in Angeles, Pampanga; Hinigaran, Negros Occidental; and Catbalogan, Samar.
This new format enriches Metro Retail’s product range in home improvement and essentials, complementing its existing retail brands: Metro Supermarket, Metro Department Store, Super Metro Hypermarket, and Metro Value Mart.
In addition, the company inaugurated a new three-hectare distribution hub in Sta. Rosa, Laguna, to bolster its operations in Luzon and improve its logistics network.
The new facility features efficient storage systems, advanced security measures, and infrastructure ready for solar panel installation, supporting scalability in the supply chain.
Metro Retail shares climbed by 1.59% or two centavos, closing at P1.28 each on Wednesday. — Revin Mikhael D. Ochave
