METRO Retail Stores Group Inc. (MRSGI) nearly doubled its first-quarter net income as higher sales and improved margins boosted earnings despite increased expansion-related costs.
The retailer on Monday said that consolidated net income after tax had risen 92.5 percent to P25.8 million in the January-to-March period, while net sales grew 5.4 percent year on year to P9.38 billion.
Food retail remained the main growth driver with sales rising 6.3 percent, while general merchandise sales increased 2.5 percent. Same-store sales also posted a 2.9-percent increase during the quarter.
MRSGI said gross margin improved to 21.7 percent from 21.3 percent, supported by a more favorable product mix and stronger food retail performance.
Operating expenses, however, climbed 6.6 percent to P2.15 billion due to store expansion, network scaling and the ramp-up of newly opened and renovated branches.
Despite the higher costs, earnings before interest, taxes, depreciation and amortization increased by 14.9 percent to P474.7 million.
“MRSGI delivered a steady start to 2026, supported by continued sales growth and improved margins across our core categories,” MRSGI President and Chief Operating Officer Joselito Orense said.
“During the quarter, we continued to strengthen our network in key growth areas, while managing costs and improving operational efficiency,” he added.
The company also expanded its in-store service offerings through a partnership with Generika Drugstore, which began pilot operations in select Metro Retail branches in Ayala Feliz and Tagaytay.
MRSGI said it planned to open around a dozen more Generika outlets within its stores before the end of the year.
The company's shares on Monday were unchanged at P1.12 each.
NAZYLEN JOY MABANGLO
