Earnings of Robinsons Retail down 30% as lockdown hits Q3 sales

earnings of robinsons retail down 30 as lockdown hits q3 sales - Earnings of Robinsons Retail down 30% as lockdown hits Q3 sales

ROBINSONS RETAIL Holdings, Inc. (RRHI) posted a 30% decline in earnings for the third quarter due to the two-week strict lockdown in early August.

In a statement on Thursday, the Gokongwei-led retailer said its attributable net income stood at P750 million in the three months ending September, down from P1.06 billion in the same period last year.

Net sales were also lower by 11% to P34.61 billion, while operating income dropped 25% to P1.46 billion.

The company said its main challenge during the period was the reversion to a strict lockdown in Metro Manila and key areas from Aug. 5 to 18. This affected discretionary store formats, on top of mobility limitations that weighed on mall foot traffic.

On a nine-month basis, RRHI’s attributable net income fell 14% to P2.39 billion, while net sales slid 6% to P109.58 billion.

Sales in all existing stores of RRHI dropped 6.4% during the period, while sales in supermarkets and drugstores grew 11.5% and 3.5%, respectively.

“Our (third quarter) financials give us some optimism that the worst may have passed for RRHI and the retail sector,” RRHI President and Chief Executive Officer Robina Y. Gokongwei-Pe said in the statement.

“Compared to (the second quarter), we saw significant improvements in our results across the majority of our formats. We are hopeful that the uplift continues for the rest of the year,” she added.

RRHI ended September with 1,853 stores, composed of 63 supermarkets, 49 department stores, 223 do-it-yourself stores, 481 convenience stores, 521 drugstores, and 316 specialty stores. This excludes the franchised stores of The Generics Pharmacy.

As of October, RRHI has expanded its drugstore network with the acquisition of Rose Pharmacy, Inc. This is expected to boost the company’s top line as Rose Pharmacy has close to P9 billion annual sales.

“(The pandemic)’s impact on people, businesses, and the overall economy is still very much felt and apparent, and our year-on-year numbers remain down. Yet we are seeing signs of recovery amidst an age of social distancing and safety precautions, and all of us are adapting to this new dynamic in retail,” Ms. Gokongwei- Pe said.

RRHI shares fell 60 centavos or 0.92% to P64.40 each on Thursday. — Denise A. Valdez

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