RRHI net income tumbles despite higher sales in ’23

Robinsons Retail Holdings inc. (RRHI) said its net income for the entire 2023 fell 27 percent to P4.65 billion from the previous year’s P6.43 billion.

The company attributed this to foreign exchange losses following the appreciation of the peso against the US dollar, equitized loss with the derecognition of robinsons Bank’s net income under equitized earnings following the merger with Bank of the Philippine Islands (BPI) and losses from start-up investments.

net sales were up 7 percent to P192.12 billion in 2023 from the previous year’s P178.82 billion. Samestore sales grew almost 4 percent, despite inflationary pressures and a high base in 2022 with the economic reopening.

Supermarkets and drugstores were the company’s main growth drivers, the company said.

“The strategic initiatives we put in place in 2023, such as increasing market coverage and improving store efficiency, proved instrumental in maintaining our growth trajectory despite the challenging operating environment,” robina gokongweipe, the company’s president and Ceo, said.

“As we move forward in 2024, we are optimistic that we can capture the expected recovery in consumer confidence, particularly as inflation pressures begin to subside. We remain committed to expanding our business prudently, balancing the needs of our retail customers with the interests of our diverse stakeholders.”

gross profit came in at P45.6 billion in 2023, higher by 8 percent, from the previous year’s P42.28 billion, driven by assortment shifts and sustained penetration of private label brands. Core net earnings registered flat growth to P5.6 billion.

Core net earnings exclude foreign exchange gain or losses, interest income from bonds, equity in earnings from associates, interest expense related to the BPI shares acquisition financing, BPI cash dividends and others. robinsons retail said its investment in BPI yielded a net positive carry in 2023, significantly better than earlier expected as borrowings related to the purchase of the BPI shares were reduced faster than planned.

As of end-2023, robinsons retail operated a total of 2,393 stores consisting of 349 supermarkets, 1,054 drugstores, 50 department stores, 230 DIY stores, 408 convenience stores, and 302 specialty stores. It also has over 2,100 franchised stores of the generics Pharmacy.