CITY OF SAN FERNANDO – In order to promote operational efficiency, Robinsons Retail Holdings Inc. (RRHI) has approved the merger of some of its units.
On Monday, the Gokongwei-led RRHI said in a statement that its board of directors has approved the merger of some of its units that own toys and food and beverage business in a move to promote operational efficiency.
The RRHI said in its disclosure that Robinson’s Supermarket Corp. (RSC) will take in Robinson’s Inc. (RI) and its wholly owned subsidiaries, Robinsons Toys Inc. and Robinsons Gourmet Food and Beverage Inc (RGFBI).
It was learned that RSC will issue 84.33 million shares on a par value of P1 per share in exchange for the consolidated net assets of the three firms.
RRHI said “the merger is expected to increase operational efficiency by reducing back-end paper work, and processes by and among these companies.”
“The merger of RI, RTI and RGFBI with and into RSC is not expected to have any significant effect on the business, financial condition, and operations of RRHI,” the statement coming from RRHI added.
It was also learned that excluding the franchised stores of The Generics Pharmacy, Robinsons Retail ended the three quarters of 2019, with a total of 1,918 stores comprising of 258 supermarkets, 50 department stores, 215 do-it-yourself stores, 509 convenience stores, 517 drugstores and 369 specialty stores.
It was gleaned that the group’s gross floor area expanded by 20 percent year-on-year ending September to 1.44 million square meters.
Robinsons Retail spent a total of P2.2 billion in capital expenditures for the nine-month period.
The company’s income for the nine months of 2019 fell 25 percent to P2.87 billion, from the previous year’s P3.83 billion mainly on the effects of the Philippine Financial Reporting Standards 16, which covers leasing activities.
RRHI is one of the largest multi-format retailers in the Philippines under the Gokongwei group. It operates a diverse brand portfolio with the following major formats: supermarket, department store, do-it-yourself, drugstore, convenience store, consumer electronics and appliances, toys, one-price concept store, international fashion and beauty specialty stores, and specialty coffee shops.
The Gokongwei group is one of the largest and most diversified Filipino conglomerates, engaged primarily in businesses that serve a growing middle class with rising disposable incomes in the Philippines, Southeast Asia, and Australasia.