Robinsons Retail Holdings, Inc. · PSE:RRHI

Robinsons Retail — Q3 2024 Earnings Presentation

31 slides from Robinsons Retail's earnings presentation, Oct 25, 2024

  1. Slide 1: YTD September 2024 (9M 2024) Unaudited Earnings Results

    YTD September 2024 (9M 2024) Unaudited Earnings Results 25 October 2024

  2. Slide 2: Agenda

    Agenda 1 Performance Highlights 2 Store Network 3 Business Segments 4 Updates on Minority Investments 5 Corporate Developments AT THE HEART OF MEANINGFUL RETAIL

  3. Slide 3: 3Q2024 Performance Highlights

    3Q2024 Performance Highlights Net Sales Same Store Gross Profit 48.7bn Sales Growth ₱ 11.8bn ₱ ▲ 3.1% 0.5% ▲ 4.0% Gross Margin: 24.3% +20bps EBIT Core Earnings Net Income ₱ 2.3bn 1.4bn to Parent ▲ 0.6% EBIT Margin: ₱ ▲ 0.1% ₱ 1.0bn ▲ 28.7% 4.7%, -10bps

  4. Slide 4: 9M2024 Performance Highlights

    9M2024 Performance Highlights Net Sales Same Store Gross Profit 142.4bn Sales Growth ₱ 34.3bn ₱ ▲ 3.0% 0.7% ▲ 4.3% Gross Margin: 24.1% +30bps EBIT Core Earnings Net Income ₱ 6.4bn 4.1bn to Parent ▲ 3.7% EBIT Margin: ₱ ▲ 7.6% ₱ 7.8bn ▲ 3.0x 4.5%, +10bps

  5. Slide 5: Revenue Trends

    Revenue Trends 3Q23 3Q24 9M23 9M24 3Q∆ 9M∆ Blended Same Store Sales Food 28.4 29.7 83.3 86.7 4.8% 4.1% Growth (SSSG) 5.0% Drugstores 8.3 9.1 24.4 26.3 9.0% 7.8% Department 3.9 3.8 10.8 10.8 -3.9% -0.2% stores 2.5% DIY stores 3.1 2.9 9.0 8.5 -5.9% -5.2% Specialty 0.5% 0.7% 3.6 3.3 10.7 10.1 -8.5% -5.

  6. Slide 6: Consolidated Results – P&L

    Consolidated Results – P&L In ₱ mn 3Q23 3Q24 9M23 9M24 3Q∆ 9M∆ Net Sales 47,222 48,699 138,200 142,409 3.1% 3.0% SSSG 2.5% 0.5% 5.0% 0.7% Gross Profit 11,365 11,823 32,894 34,304 4.0% 4.3% Gross Margin 24.1% 24.3% 23.8% 24.1% EBITDA 4,128 4,048 11,651 11,728 -1.9% 0.7% EBITDA Margin 8.7% 8.3% 8.4% 8

  7. Slide 7: Net Sales and EBITDA Breakdown

    Net Sales and EBITDA Breakdown Specialty stores, 7.1% Specialty stores, Food, 62.6% DIY stores, 6.0% Food, 60.9% 4.1% Department DIY stores, stores, 7.5% 9.2% Net Sales Department EBITDA stores, 5.0% (9M2024) (9M2024) Drugstores, Drugstores, 18.5% 19.1% 7

  8. Slide 8: Store Network

    Store Network Total of 2,413 stores plus 2,163 TGP Branches Metro Manila Luzon Visayas Mindanao Total Food 400 289 52 17 758 Luzon Drugstores1 145 449 343 164 1,101 Department Stores 9 20 12 9 50 Metro Manila DIY Stores 56 104 39 26 225 Visayas Specialty Stores 89 122 42 26 279 Total 699 984 488 242

  9. Slide 9: Food Segment

    Food Segment Net sales (₱ mm) Same Store Sales Growth ∆+4.1% 86,730 4.5% 83,310 ∆+4.8% 1.8% 1.9% 29,721 1.5% 28,354 758 stores Robinsons 3Q2023 3Q2024 9M2023 9M2024 3Q2023 3Q2024 9M2023 9M2024 151 Supermarket Robinsons 135 Easymart Gross Profit (₱ mm) EBITDA (₱ mm) ∆+5.3% ∆+3.1% 15 Shopwise 7,124 7,

  10. Slide 10: Drugstore Segment

    Drugstore Segment Net sales (₱ mm) Same Store Sales Growth (1) ∆+7.8% 26,343 6.6% 24,436 5.0% 3.5% 3.8% ∆+9.0% 8,308 9,054 1,101 owned stores 3Q2023 3Q2024 9M2023 9M2024 3Q2023 3Q2024 9M2023 9M2024 2,163 franchised stores Gross Profit (₱ mm) EBITDA (₱ mm) ∆+8.5% ∆+2.8% 678 Southstar Drug 2,177 2,239

  11. Slide 11: Department Store Segment

    Department Store Segment Net sales (₱ mm) Same Store Sales Growth ∆-0.2% 9.8% 10,771 10,751 6.4% ∆-3.9% 0.3% 3,939 3,786 (3.4%) 3Q2023 3Q2024 9M2023 9M2024 3Q2023 3Q2024 9M2023 9M2024 Gross Profit (₱ mm) EBITDA (₱ mm) 50 stores ∆+0.6% ∆-37.4% ∆-17.7% 3,326 3,345 8.1% 6.7% 49 5.3% 5.5% ∆-3.3% 717 1 5

  12. Slide 12: DIY Segment

    DIY Segment Net sales (₱ mm) Same Store Sales Growth ∆-5.2% 8,985 8,521 0.4% ∆-5.9% (0.9%) 3,064 2,882 (5.1%) (5.8%) 3Q2023 3Q2024 9M2023 9M2024 3Q2023 3Q2024 9M2023 9M2024 225 stores Gross Profit (₱ mm) EBITDA (₱ mm) ∆-0.0% ∆+17.0% 197 Handyman 2,836 2,835 1,083 925 ∆-0.6% 28 True Value ∆+5.5% 953

  13. Slide 13: Specialty Segment

    Specialty Segment Net sales (₱ mm) Same Store Sales Growth ∆-5.9% 3.7% 4.5% 10,698 10,064 ∆-8.5% 3,558 3,254 (6.4%) (8.6%) 3Q2023 3Q2024 9M2023 9M2024 3Q2023 3Q2024 9M2023 9M2024 Gross Profit (₱ mm) EBITDA (₱ mm) 279 stores ∆-36.3% 110 Appliances & Electronics ∆-1.0% 764 2,918 41 Toys 2,890 ∆+0.5% ∆

  14. Slide 14: Working Capital

    Working Capital 9M2023 9M2024 Cash Conversion Cycle 5.0 Receivable 4.5 Days 26.0 25.1 79.4 Inventory 74.6 Days 58.8 Payable 53.7 1 2 Days 9M2023 9M2024 14

  15. Slide 15: Balance Sheet

    Balance Sheet September 30, 2023 September 30, 2024 in ₱ mn (Unaudited) (Unaudited) Cash & Cash Equivalents 9,299 9,003 Investment in Liquid Debt & Equity Securities 3,473 3,280 Total Assets 149,998 165,272 Total Debt 21,997 22,437 Total Equity 80,155 94,579 Return on Assets (trailing 12-months)* 2.

  16. Slide 16: Capital Expenditures

    Capital Expenditures Drugstores 16% Food 58% Department stores 10% DIY stores 8% Specialty stores 8% 9M2024 Organic Capex: ₱2.8 billion 16

  17. Slide 17: Updates on Minority Investments

    Updates on Minority Investments

  18. Slide 18: Updates on O!Save (9M24)

    Updates on O!Save (9M24) O!Save is a hard discount supermarket chain founded in 2021. It is operated by HD Retail Holding Pte Ltd, which RRHI has a 23% stake in. 318 280 sqm Number of Stores Average store size vs. 155 LY US$155mn 3 Distribution Centers Net Sales Pampanga, Rizal, vs. US$64mn LY Bulac

  19. Slide 19: Updates on G2M (9M24)

    Updates on G2M (9M24) G2M Solutions Inc is a solutions provider that effectively owns 100% of Growsari, a tech-enabled platform that US$674mn 23 helps the Philippines’ over one million 9M24 Total Platform Value sari-sari stores. Launched in 2016, # of Key Cities Growsari's business encompasses FMCG

  20. Slide 20: Corporate Developments

    Corporate Developments

  21. Slide 21: ACGS Golden Arrow Award

    ACGS Golden Arrow Award Third consecutive year of being recognized for excellence in corporate governance 21

  22. Slide 22: Spatio opens at Opus

    Spatio opens at Opus 22

  23. Slide 23: Robinsons Retail recognized as one of the world's best by Time, Statista

    Robinsons Retail recognized as one of the world’s best by Time, Statista 23

  24. Slide 24: Food Segment opens 5th distribution center

    Food Segment opens 5th distribution center 24

  25. Slide 25: Appointment of Thaddeus Sanchez as Southstar Drug GM

    Appointment of Thaddeus Sanchez as Southstar Drug GM - Close to 10 years experience in drugstores and 12 years in pharmaceuticals - First joined Southstar Drug in 2016 as Operations AVP, managing 412 stores - Appointed Deputy GM in 2022 and oversaw merchandising, supply chain management, and store e

  26. Slide 26: Recent Developments at True Value

    Recent Developments at True Value 26

  27. Slide 27: Guidance for 2024

    Guidance for 2024 Net store additions SSSG target of of 90-110 2%-4% 20-40bps gain on Organic CAPEX of gross margins ₱4.0-6.0bn 27

  28. Slide 28: Thank you!

    Thank you! 2.27 oo ily = am» ere ons alia ee ill =

  29. Slide 29: Income Statement

    Income For the Quarter Ended Nine Months Ended September 30 September 30 2023 2024 2023 2024 Statement PHP mm (Unaudited) (Unaudited) (Unaudited) (Unaudited) Sales - net of sales discounts and returns 47,222 48,699 138,200 142,409 Cost of merchandise sold 35,857 36,876 105,306 108,105 Gross Profit 1

  30. Slide 30: Balance Sheet

    December 31 September 30 (Audited) (Unaudited) Balance Sheet PHP mm Current Assets Cash and cash equivalents 2023 13,173 2024 9,003 Trade and other receivables 3,948 2,346 Merchandise inventories 29,668 31,328 Other current assets 1,682 1,801 Total Current Assets 48,471 44,479 Noncurrent assets Held

  31. Slide 31: Cash Flow

    December 31 September 30 September 30 Cash Flow (Audited) (Unaudited) (Unaudited) 2023 2023 2024 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 6,173 4,045 9,193 Depreciation and amortization including ROU amortization - PFRS 16 7,500 5,515 5,366 Retirement expense 317 127 198 Others

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