Metro Retail Stores Group Inc. (MRSGI) reported profit of P776 million in 2019, down 19.7 percent from P966.38 million the prior year on new accounting adjustments regulators had imposed.
Sales grew 11.3 percent to P36.8 billion from P33.06 billion the previous year.
The company said operating income jumped 21.5 percent to P1.063 billion.
“Non-core income increased by P218.7 million mainly due to additional insurance recoveries, offset by the net impact of PFRS 16, which amounted to P363.7 million after tax for the full year of 2019,” it said.
MRSGI said PFRS 16 is a new accounting standard which aims to provide a basis to assess the effect of leasing activities on the entity’s balance sheet, income statement and cash flows. It took effect on January 1, 2019.
“Excluding the impact of PFRS 16, MRSGI’s operating income and net income would have increased by 13.7 percent and 18.0 percent, respectively,” it said.
“Pre-PFRS 16 EBITDA, on the other hand, remained robust at P2.07 billion up by 16.3 percent from 2018,” it added.
MRSGI said its push to increase its store network to serve emerging cities and municipalities in Visayas, Central Luzon and the Bicol region “was vital to the homegrown retailer’s strong performance.”
“Adding to the company’s optimistic outlook is the steady sales of its newly reopened Metro Supermarket located at its Cebu flagship store,” it said.
MRSGI said its supermarkets, hypermarkets and pharmacies remain open to provide much-needed basic goods and services as the Philippines grapples with the coronavirus disease outbreak.
