RETAILER OSave Trading Philippines Corp., which operates the discount retail chain O!Save, sees achieving profitability in seven to 10 years as it ramps up its network of stores around the country.
The company, a wholly-owned unit of Singapore-based HD Retail Holding Pte. Ltd., is currently on its 300th store, social media promotions show.
The retailer, where Gokongwei Group is a shareholder, however remains in the red since it was established in 2021, with 2023 operations ending in a P912.25 million loss, up from P408 million in 2022, a regulatory filing showed.
This despite sales rising by 467.92 percent to P6.02 billion compared to the prior year’s P1.06 billion.
The loss increased the company’s consolidated deficit by 197.2 percent to P1.37 billion from P460.96 million in end-2022.
“As of these dates, the company’s current liabilities exceeded its current assets by P754.86 million and P304.53 million for the same period, respectively. These conditions indicate that a material uncertainty exists that may cause significant doubt on the company’s ability to continue as a going concern and therefore the company may not be able to realize its assets and discharge its liabilities in the normal course of business,” the company said.
For the period, the company had a total asset of P4.26 billion, higher than the P1.74 billion recorded in the prior year. Liabilities were at P3.83 billion, increasing from P1.53 billion the previous year.
Current assets are at P1.24 billion, up from P316.5 million, while current liabilities stood at P2 billion, higher than the P621.03 million recorded in the prior year.
Shareholders equity was at P425.48 million, up from P207.97 million the previous year.
OSave said it can still “fully support the operating, investing, and financing activities of the company” with its related parties, having no plan to enforce the collection of P414.57 million in receivables as of last year, up from P201.98 million in end-2022 to support the company’s cashflow requirements.
Robinsons Retail currently has a 23.08 percent stake in HD Retail and a seat in its board of directors, along with three institutional investors with equal stake in the business.
