Metro Retail Stores Group, Inc. · PSE:MRSGI
Metro Retail Stores — Q3 2019 Earnings Presentation
24 slides from Metro Retail Stores's earnings presentation, Nov 19, 2019
Slide 1: 3Q & 9M 2019 Earnings Call & Analysts' Briefing
3Q & 9M 2019 EARNINGS CALL & ANALYSTS’ BRIEFING November 19, 2019 Metro Retail Stores Group, Inc. Manila Corporate Office
Slide 2: Agenda
Agenda 3Q & 9M 2019 Performance and Results Existing Store Network Network Expansion Initiative 2
Slide 3: 3Q & 9M 2019 Unaudited Consolidated Results
3Q & 9M 2019 Unaudited Consolidated Results Revenue (in billions Php) 10.9% 25.28 11.3% 22.79 7.81 8.69 • Revenue for the first nine-months of the year continue to increase primarily due to the ramp up in sales of new stores and the re- 3Q 2018 3Q 2019 9M 2018 9M 2019 opening of our flagship Ayala C
Slide 4: 3Q & 9M 2019 Unaudited Consolidated Results
3Q & 9M 2019 Unaudited Consolidated Results • Absolute Gross Margin (PhP) grew by 10% Gross Margin (in billions Php) due to the improving performance of new 10.0% 5.12 5.63 and existing stores. Gross margins (in %), on the other hand, contracted by 20 bps due to 22.3% 12.4% 22.5% the lower margins p
Slide 5: 3Q & 9M 2019 Unaudited Consolidated Results
3Q & 9M 2019 Unaudited Consolidated Results EBITDA (in millions Php) 25.9% 1,235.75 981.18 4.9% 7.1% • Both EBITDA and Net Income registered 4.3% double-digit growth for the nine-month 280.16 261.65 period due to improving stores performance; 3.4% 3.2% and execution of key strategies and process imp
Slide 6: Other Nine-months Highlights
Other Nine-months Highlights • Rental income expanded by 6.6% from P157.7 million to P187.3 million in the same nine-month period a year ago on account of the additional leasable space from our new stores and the regular rent escalation. • Rent expense for the nine-month period increased by 25.4% du
Slide 7: Department Store Comparable Sales
3Q & 9M 2019 Performance and Results Department Store Comparable Sales Store Sales with METRO Ayala Cebu Store Sales w/o METRO Ayala Cebu 3.0% 2.7% 6.40 6.23 6.42 6.23 3.4% 3.4% 2.04 2.04 1.97 1.97 3Q 2018 3Q 2019 9M 2018 9M 2019 3Q 2018 3Q 2019 9M 2018 9M 2019 • Sales of our Department Store segmen
Slide 8: Supermarket Comparable Sales
3Q & 9M 2019 Performance and Results Supermarket Comparable Sales Store Sales with METRO Ayala Cebu Store Sales w/o METRO Ayala Cebu 3.7% 4.1% 9.61 9.97 9.58 9.97 3.3% 3.3% 3.35 3.46 3.35 3.46 3Q 2018 3Q 2019 9M 2018 9M 2019 3Q 2018 3Q 2019 9M 20189M 2019 ** Sales with Ayala refers only to sales of
Slide 9: Hypermarket Comparable Sales
3Q & 9M 2019 Performance and Results Hypermarket Comparable Sales Store Sales with Super METRO Anonas Store Sales w/o Super METRO Anonas 4.4% 5.3% 6.33 6.61 6.28 6.61 2.3% 2.3% 2.19 2.24 2.19 2.24 3Q 2018 3Q 2019 9M 2018 9M 2019 3Q 2018 3Q 2019 9M 2018 9M 2019 9
Slide 10: MRSGI Existing Store Network
MRSGI Existing Store Network Geographical Store Network Composition (as of end-September 2019) Luzon 12 1 STORE Visayas 56 Under Rehabilitation STORES 32 across Luzon and Visayas NCR 12 DEPARTMENT STORE SUPERMARKET HYPERMARKET NCR 5 NCR 7 NCR 0 Luzon 4 Luzon 4 Luzon 4 Visayas 5 Visayas 18 Visayas 9
Slide 11: MRSGI Expansion Plan
MRSGI Expansion Plan Est. Projected No. of Stores by 2019 Format Region GFA Opening Compact Dept. Store Baybay, Leyte Opened on 10,800 5 & Supermarket E. Visayas July ‘19 57 Metro Ayala Center Cebu City Soft Open 52 53 33,000 50 Cebu Dept. Store C. Visayas Nov. 2019 Metro IT Park Cebu City 3,000 Dec
Slide 12: Metro Ayala Center Cebu Rebuild Program
Metro Ayala Center Cebu Rebuild Program METRO Ayala % to Store Re-Build Scheduled Cebu Level Sales (2017) Phase Re-Opening Basement 1 6% Opened in Phase 1 Basement 2 49% Dec. 2018 Ground Floor 12% Opened on Phase 2 Second Floor 12% 4Q 2019 Third Floor 6% Fourth Floor 8% Phase 3 2020 Fifth Floor 7% S
Slide 13: MRSGI Expansion Plan: METRO Ayala Cebu
MRSGI Expansion Plan METRO Ayala Cebu – Department Store Partially opened on Nov. 2019 13
Slide 14: MRSGI Expansion Plan: METRO CITP
MRSGI Expansion Plan METRO CITP Estimated Opening Date: Dec. 2019 14
Slide 15: MRSGI Expansion Plan: METRO Tacloban
MRSGI Expansion Plan METRO Tacloban Estimated Opening Date: 1H 2020 15
Slide 16: MRSGI Expansion Plan: METRO Danao
MRSGI Expansion Plan METRO Danao Estimated Opening Date: 1H 2020 16
Slide 17: MRSGI Expansion Plan: METRO Sum-Ag
MRSGI Expansion Plan METRO Sum-Ag Estimated Opening Date: 1H 2020 17
Slide 18: MRSGI Expansion Plan
MRSGI Expansion Plan 800k sqm GFA 43k sqm Ongoing Negotiations As of end 134k sqm (Pipeline) 89% Sep. 2019 Ongoing or 462k sqm Operating Design and 712k sqm Construction Stores 73k sqm Accomplished For Board Approval New Stores will mostly be Department Stores will be Supermarket or Hypermarket purs
Slide 19: Thank You!
THANK YOU! 19
Slide 20: Annex
EY RETAIL STORES GROUP, INC. | Annex
Slide 21: Unaudited Interim Statement of Comprehensive Income
Unaudited Interim Statement of Comprehensive Income 21
Slide 22: Unaudited Interim Statement of Financial Position
Unaudited Interim Statement of Financial Position 22
Slide 23: Unaudited Interim Statements of Cash Flows
Unaudited Interim Statements of Cash Flows 23
Slide 24: 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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