Metro Retail H1 profit jumps 45% as margins widen

Insider Spotlight

• First-half net income rose 45 percent to P212.2 million as margins improved
• Net sales grew 3.1 percent to P19.36 billion, but comparative store sales increased just 0.2 percent
• Gross margin widened to 22.6 percent from 21.8 percent, helping operating income climb 22.8 percent
  
  
  
  

Metro Retail Stores Group Inc. grew first-half net income by 45 percent to P212.2 million as a better sales mix and disciplined cost management helped the retailer extract stronger earnings from modest sales growth.

Why it matters

Metro Retail’s profit growth sharply outpaced its top-line performance, highlighting the importance of wider margins as comparative store sales remained nearly flat.

The results suggest the retailer is getting more profitability from each peso of sales even as inflation and expansion add to operating costs.

By the numbers

Consolidated net sales rose 3.1 percent year on year to P19.36 billion in the first half, with comparative store sales increasing just 0.2 percent.

Food retail remained the stronger segment, with sales rising 3.8 percent, while general merchandise grew 1.2 percent.

Gross margin widened to 22.6 percent from 21.8 percent in the same period last year, supported by margin improvements in both food retail and general merchandise through a better sales mix.

Operating income climbed 22.8 percent to P339.4 million.

Operating expenses increased 4.8 percent amid inflationary overhead and costs related to new store openings despite pressures associated with the ongoing Middle East conflict.

Second-quarter net income after tax grew 40.3 percent year on year, although Metro Retail did not disclose the quarter’s absolute profit.

Zoom in

Metro Retail is pairing margin improvement with network expansion, particularly in the Visayas.

The retailer added locations in Naval, Biliran, and Lapu-Lapu and Mandaue cities in Cebu, bringing its network to 84 branches across Luzon and the Visayas.

It is also upgrading large stores and hypermarkets. In July, the company relaunched its pioneer Metro Colon store in Cebu after renovations.

 Joselito Orense

President and  COO, Metro Retail Stores Group

What they're saying

“Our strong performance in the first half of 2026 demonstrates the effectiveness of our strategic growth initiatives and the resilience of our core business,” Metro Retail president and chief operating officer Joselito Orense said in a press statement.

“As we move into the second half of the year, we remain committed to bringing goods closer to communities, creating local jobs, and continuing operational efficiency to deliver sustained value to our customers and shareholders,” he added.  —Vanessa Hidalgo| Ed: Corrie S. Narisma