Robinsons Retail posts 85% profit drop due to one-time gain absence

Robinsons Retail Holdings Inc. (RRHI) reported an 85% drop in net income for the first quarter of 2025, amounting to P760 million, primarily due to the absence of a one-time gain from a bank merger recognized in Q1 2024.

The company's core income, excluding non-recurring gains from the Robinsons Bank and Bank of the Philippine Islands deal, actually grew by 4.9% to P1.2 billion.

Despite the profit decline, RRHI's net sales increased by 4.2% to P47.82 billion, supported by gains from its food, drugstore, and department store segments, as well as additional selling days in March due to the later Holy Week holidays.

Gross profit climbed 6.2% to P11.6 billion, attributed to a better category mix and improved inventory management.

Operating income saw a slower growth of 2.7% to P1.9 billion, impacted by increased manpower expenses from wage hikes and one-time costs from RRHI's employee benefits program.

As of the end of the first quarter, RRHI operated 2,448 stores and 2,116 franchised stores of The Generics Pharmacy.

CEO Stanley Co expressed optimism, highlighting the recovery in basket sizes as a key driver for revenue growth and mentioning plans for assortment optimization, store expansion, and operational efficiencies.