Metro Retail Stores Group, Inc. · PSE:MRSGI
Metro Retail Stores — Q3 2023 Earnings Presentation
29 slides from Metro Retail Stores's earnings presentation, Nov 23, 2023
Slide 1: 3Q & 9M 2023 Earnings Call and Analysts' Briefing
3Q & 9M 2023 Earnings Call and Analysts’ Briefing 23 November 2023
Slide 2: Presenters
Presenters Mr. Arnold M. Leoncio Mr. Joselito G. Orense Vice President for Business Development Treasurer and and Investor Relations Chief Finance Officer
Slide 3: General rules
General rules 1. Please note that this call will be recorded. Recording of this Earnings Call will be shared upon request. 2. This Earnings Call will run for about an hour with the first part allotted for a presentation and the second part for the Q&A. 3. Participants other than the speakers will be
Slide 4: 9M 2023 Financial and Operational Highlights
9M 2023 Financial and Operational Highlights Net sales decreased by Gross profit grew by EBITDA decreased by Net income declined by -0.04% 3.79% -19.7% -36.5% to PhP26.54 billion to PhP5.75 billion to PhP1.29 billion to PhP254.57 million Share to Business vs. historical financials (in % of 9M2023 ne
Slide 5: Results of operations: Net sales
Results of operations Net Sales increased in Q3 but remained flattish overall for the year Net sales Share to Business (in PhP billion) (in % of 9M 2023 net sales) -0.04% 26.55 26.54 Supermarket Hypermarket 54% 23% 4.7% 9.13 9.56 Department store 3Q 2022 3Q 2023 9M 2022 9M 2023 23% Net sales for t
Slide 6: Results of operations: Gross profit and operating expenses
Results of operations Gross profit margin improved in absolute terms and as % of sales Gross Profit Operating Expenses (in PhP billion) (in PhP billion) 3.8% 9.7% 5.44 5.75 4.96 5.54 20.5% 21.7% 18.7% 20.9% 1.0% 4.0% 1.98 2.00 1.77 1.84 21.7% 20.9% 19.4% 19.2% 3Q 2022 3Q 2023 9M 2022 9M 2023 3Q 2022
Slide 7: Results of operations: EBITDA and Net Income
Results of operations EBITDA and NIAT decreased EBITDA Net Income (in PhP million) (in PhP million) -19.7% 1,601.52 6.0% 1,286.81 4.8% -19.4% 600.76 -36.5% 484.36 6.6% -35.2% 400.70 5.1% 181.77 254.57 117.72 1.5% 2.0% 1.0% 1.2% 3Q 2022 3Q 2023 9M 2022 9M 2023 3Q 2022 3Q 2023 9M 2022 9M 2023 As a r
Slide 8: Results of operations: Comparable store sales
Results of operations | Comparable store sales Slightly decline in comparable sales year-to-date, but showing improvement in Q3 Blended Comparable Sales (in PhP billion) -1.1% 26.17 25.87 3.9% 8.93 9.28 3Q 2022 3Q 2023 9M 2022 9M 2023 The Company’s blended comparable sales improved for the quarter
Slide 9: Comparable store sales by format
Results of operations | Comparable store sales Department store and Hypermarket increased while Supermarket decreased Supermarket Department Store Hypermarket (in PhP billion) (in PhP billion) (in PhP billion) -6.1% 14.51 13.62 3.2% 2.6% 6.8% 6.10 6.2% 5.96 6.15 5.0% 5.71 4.60 4.72 2.22 2.33 2.11 2.
Slide 10: MRSGI existing store network
MRSGI existing store network Geographical composition of store network (as of 23 November 2023) NCR 10 63 Visayas stores Luzon 41 12 Supermarket Department Store Hypermarket NCR 7 NCR 3 NCR - Luzon 5 Luzon 4 Luzon 3 Visayas 24 Visayas 8 Visayas 9 Total 36 Total 15 Total 12 Note: Closed two stores –
Slide 11: MRSGI network expansion: New stores
MRSGI network expansion | New stores Opened two stores in August 2023 Metro LG Market Metro Value Mart Lancaster (Supermarket) (Neighborhood mini-mart) Mactan, Cebu Gen. Trias, Cavite
Slide 12: New store in Alang-alang, Leyte
MRSGI network expansion | New store in Alang-alang, Leyte Metro Alangalang (Supermarket) | Opened on 14 November 2023
Slide 13: MRSGI network expansion: Sta. Rosa Warehouse
MRSGI network expansion | Sta. Rosa Warehouse Ongoing final preparations for start of operations
Slide 14: Awards and Certifications
Awards and Certifications | DTI Gold Bagwis Awards and Landbank’s DIAMOND Award Received additional eight (8) awards for Received DIAMOND (Distinguished various store locations in Visayas (July 2023) Initiators and Movers of Nat’l Dev’t) Award from Landback (Aug 2023)
Slide 15: Mareng Ems partnership program
Metro Retail Stores elevates partnerships for business growth through Mareng Ems (Enterprising Metro Suki partner) program 10 Pang-Asenso Benefits Mareng Ems Program is tailored to enhance • Free Negosyante Membership • Kabuhayan Puhunan Credit Line collaborations and to serve as a comprehensive • A
Slide 16: Key financial indicators
Key financial indicators Currency: PhP million 2016 2017 2018 2019 2020 2021 2022 9M 2023 Financial highlights Net sales 34,411 35,016 33,050 36,790 31,286 31,211 38,102 26,537 EBITDA 1,547 1,877 1,781 2,785 1,273 1,220 2,680 1,287 Net income 789 977 965 776 (450) (318) 917 255 Equity 7,145 7,943 8.
Slide 17: MRSGI's Strategy
MRSGI’s Strategy 3Q & 9M 2023 Earnings Call and Analysts’ Briefing 23 November 2023
Slide 18: MRSGI's Five Strategy Pillars
MRSGI’s Five Strategy Pillars Sustainable Growth Operational Excellence Channel Expansion Margin Enhancement Organizational Development
Slide 19: Q&A
Q&A 3Q & 9M 2023 Earnings Call and Analysts’ Briefing 23 November 2023
Slide 20: Thank you!
Thank you! Visit us at: www.metroretail.com.ph shopmetro.ph Like/Follow us on: facebook.com/TheMetroStores @TheMetroStores @themetrostores.ph Connect with us on: linkedin.com/company/metro-retail-stores-group/
Slide 21: Annex: Financial Statements
Annex: Financial Statements 3Q & 9M 2023 Earnings Call and Analysts’ Briefing 23 November 2023
Slide 22: Statement of Comprehensive Income
Statement of Comprehensive Income
Slide 23: Statement of Comprehensive Income
Statement of Comprehensive Income
Slide 24: Statement of Financial Position
Statement of Financial Position
Slide 25: Statement of Financial Position
Statement of Financial Position
Slide 26: Statement of Cash Flows
Statement of Cash Flows METRO RETAIL STORES GROUP, INC. UNAUDITED INTERIM STATEMENTS OF CASH FLOWS For the Nine- month Periods Ended September 30 2023 2022 ‘CASH FLOWS FROM OPERATING ACTIVITIES Income {loss} beforeincome tax 942,832,071 75% ,893,232 Adjustments for: Depreciation and amortization - P
Slide 27: Statement of Cash Flows
Statement of Cash Flows CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment (Note 8) (1,056,783, 137) (521,521,052) Proceeds from insurance claim 53,681,402 - Increase in short-term investments - (2,223,744, 533) Decrease (increase) in other noncurrentassets (202,516,270) 87,3
Slide 28: Press Release
Press Release METRO MEDIA RELEASE —————— November 14,2023 Metro Retail registars PAP2S8.6 milion ret incarne forthe irstnive months oF 2023 14 Novernber 2028, Manila PHilippines ~ Métro Retall Stores Group, ho. (MRS recorded a net income of Ph#264.6 milion inthe frst nine months of 2023, down by 38.
Slide 29: Disclaimer
Disclaimer The materials and figures in this presentation and other documents are for informational purposes only and are not, in any way, a form of solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice. Information
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