Net income attributable to equity holders soared to P7.8 billion, more than tripling year-on-year, due to a one-time gain from the previously-concluded merger of Robinsons Bank with Bank of the Philippine Islands.
Earnings per share climbed to P5.38 over the nine-month period as net sales for the same period rose 3 percent to P142.4 billion.
Management’s view
“Our year-to-date performance reflects the resilience of our staples businesses, particularly in food and drugstores,” said Robina Gokongwei-Pe, president and CEO of Robinsons Retail.
“We expect to see an uplift in sales in the months ahead as consumers regain their confidence amid easing inflation. We remain committed to long-term value creation, including advancing sustainability efforts across our retail portfolio to ensure a lasting impact on our stakeholders,” she added.
Analysts’ view
Joey Cipres, research analyst at AP Securities, said the company’s essential segments drove sales while discretionary spending remains sluggish.
“This actually led them to move their target for discretionary spending’s recovery to next year. This led to a miss in their earnings for the quarter,” Cipres said.
“However, we continue to see [Robinsons Retail] as a primary beneficiary of the upcoming pick-up in consumer demand for both the consumer staples and discretionary segments on the back of moderating inflation coupled with the implementation of recent wage hikes, which we think will eventually translate to a boost in the company’s earnings as early as the next quarter,” he added.
AP Securities maintains its “Buy” rating on the company with a consensus target price of P62.06 per share.
Shares of Robinsons Retail rose 0.77 percent to P39.04 per share on Friday.
Store footprint
Robinsons Retail finished the nine-month period with a total of 2,413 stores consisting of 758 food stores, 1,101 drugstores, 50 department stores, 225 DIY stores, and 279 specialty stores.
It also has 2,163 franchised stores of TGP.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
