C06224-2023

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Aug 11, 2023
2. SEC Identification Number
CS200315877
3. BIR Tax Identification No.
226-527-915
4. Exact name of issuer as specified in its charter
METRO RETAIL STORES GROUP, INC.
5. Province, country or other jurisdiction of incorporation
Cebu, Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
Vicsal Building, corner of C.D. Seno and W.O. Seno Sts., Guizo, North Reclamation Area, Mandaue City, Cebu Postal Code 6014
8. Issuer's telephone number, including area code
(032) 236-8390
9. Former name or former address, if changed since last report
-
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common 3,250,666,000
11. Indicate the item numbers reported herein
9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Metro Retail Stores Group, Inc.MRSGI

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Press Release from Metro Retail Stores Group, Inc.
Background/Description of the Disclosure

Metro Retail posts PhP17.0 billion topline; PhP136.8 million net income in first half 2023
Other Relevant Information

11 August 2023, Manila, Philippines – Metro Retail Stores Group, Inc. (MRSGI) posted a PhP76.8 million net income in the second quarter of 2023, bringing the net income in the first half to PhP136.8 million or a 37.5% decline from the prior year’s PhP218.9 million.

MRSGI recorded PhP8.7 billion second-quarter net sales, bringing the total net sales for the first six months of 2023 to PhP17.0 billion, which was flattish (2.3% dip) from the PhP17.4 billion net sales in the same period last year. Excluding bulk wholesale transactions, total net sales for the first half of 2023 increased by 5.8% vs 2022.

General merchandise business retained its growth momentum in the first semester of the year at 7.0% while food retail business decreased by 5.6%. Blended same-store sales was also lower by 3.2% over the same six-month period last year, as the effects of inflation were compounded by stiffer competition in Luzon. Meanwhile, sales performance in the Visayas stores remained encouraging.

The Company’s blended gross margin continued to improve by 170bps to 21.9% in the first half of 2023 from 20.2% in the same period a year ago as share of general merchandise business to total sales grew. However, this was offset by the 12.8% increase in operating expenses primarily due to higher rent and utilities expenses and manpower costs.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first six months of 2023 amounted to PhP802.5 million, down by 19.7% from the same period last year. Meanwhile, MRSGI remained in a strong cash position at PhP3.4 billion, while the debt level was kept manageable. Thus, the Company continued to pursue expansion plans focused on the Visayas.

Recognizing the prevailing significance of having an omnichannel presence, the Company launched the ShopMetro app last May which was made available on both Apple Store and Google Playstore.


“We are constantly seeking ways to offer products that provide value to customers while preserving our margins,” said MRSGI President and Chief Operating Officer Manuel Alberto. “We remain hopeful that MRSGI will rally in the second semester and finish the year 2023 strong.”

* * *
Filed on behalf by:
Name Theresa Marie Puno-Dela Pena
Designation Asst. Corporate Secretary and Compliance Officer