The drop was primarily due to higher non-cash charges and depreciation costs tied to the company’s expansion efforts.
Despite lower profits, MRSGI’s net sales rose by 6 percent, reaching P18 billion. This was driven by improved sales at existing stores and contributions from newly opened locations.
Buyers shift to lower-margin food, necessities
During this period, same-store sales—which exclude earnings from new stores—saw a 3.8-percent increase, with food retail experiencing a 7.9-percent growth, while general merchandise sales were nearly flat, increasing by just 0.9 percent.
The blended gross margin fell by 1.2 percentage points to 20.7 percent, down from 21.9 percent last year, largely due to a higher proportion of lower-margin food sales and inventory clearances.
However, the company managed to keep its earnings before interest, taxes, depreciation, and amortization stable at P798.3 million, only a slight 0.5 percent decrease from P802.5 million in the previous year.
Management’s view
“With the improved momentum from the second quarter and going into the second half of 2024, the company continues to hold an optimistic outlook for the rest of the year on the back of improvement in sales growth, cost management, and the projected opening of new stores planned in the third and fourth quarters,” MRSGI president and chief operating officer Manuel Alberto said.
