Panic buying lifts Robinsons Retail sales in Q1 2020

Ralf Rivas
Panic buying lifts Robinsons Retail sales in Q1 2020
Robinsons Retail Holdings reports a 45% surge in its net income in the 1st quarter of 2020 despite closure of some stores

MANILA, Philippines – Despite temporary store closures due to the coronavirus pandemic, earnings of Robinsons Retail Holdings Incorporated (RRHI) jumped in the 1st quarter of 2020. 

In a disclosure to the Philippine Stock Exchange on Wednesday, April 29, RRHI reported a 45% surge in its net income to P923 million in the first 3 months of the year, due to strong performance of Rustan’s.

Core net earnings or profits from its main business increased by 32.7% to P784 million.

Consolidated net sales expanded by 7.3% to P40.1 billion despite temporary closure of some stores mid-March.

RRHI noted that supermarkets, drugstores, and convenience stores, which provide basic necessities during the lockdown, comprised 77% of consolidated sales.

“Blended SSSG (same store sales growth) for the 1st quarter ending March 2020 was strong at 6.9% as evidenced by the high sales induced by panic buying for essential goods such as food and medicines, most especially in March,” RRHI said.

Supermarkets generated 18.7% of RRHI’s same store sales growth or revenues gained from existing outlets, while drugstores sustained 13.7% growth.

While supermarkets and drugstores were up by double digits, RRHI noted that other businesses are “in the negative territory” amid the pandemic. (READ: [OPINION] Business unusual: When the business community responds to a virus)

The company spent a total of P558 million in capital expenditures for the quarter. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.