Dear Stakeholders

Every day throughout the Philippines, our stores become touchpoints of joy for the people and communities we serve.

Our 2023 Annual and Sustainability Report, titled “Love Your Shelves,” embodies our earnest hope of enriching the lives of every Filipino through the products and solutions that we lovingly provide.

We remain committed to delivering long-term value as we face the challenges of the future head on and as we try to make a difference, one shelf at a time.2023 was another year of continued growth, marked by milestones built upon our commitment to sustainable growth and nurturing shareholder value.

This year, the global economy posed both challenges and opportunities for retailers like us. Heightened inflation exerted considerable pressure on consumer baskets and operating expenses. In addition, the already cutthroat competition in the market intensified further. New and established players continued to accelerate their expansion efforts, eager to capitalize on the prospects of a growing retail market.  Amidst these headwinds, we persevered and managed to generate growth. Our journey has indeed been marked by milestones. In the last ten years, we debuted our minimart format and subsequently entered the premium and hypermarket formats for our supermarkets. We also added banners in drugstores and entered new formats like pet retail. We introduced our own e-commerce platform GoCart and transformed our convenience stores into a truly Filipino brand named after our founder John Gokongwei Jr.  In 2023, our revenues increased by 7.4% to Php192.1 billion, supported by our blended same store sales growth (SSSG) of 3.9% and our store expansion initiatives. Strong topline growth augmented by gross profit expansion grew our EBITDA by 3.6% to Php16.4 billion and our EBIT by 2.8% to Php8.9 billion. Core net earnings, which exclude non-recurring items, grew by 1.5% to Php5.6 billion despite rising cost pressures. The primary drivers of revenue growth were our core staples businesses, namely Supermarkets and Drugstores, accounting for over 70% of revenues.  Our resilience is directly attributed to an unwavering commitment to become the retailer of choice of Filipinos.

Strategic Growth

First, we have strategically expanded our store network in underserved regions where modern trade retailers are in high demand. In 2023, we opened 84 new outlets with bulk of the store openings happening outside Metro Manila growing our total store network to 2,393 stores. At the end of 2023, our Supermarket Segment was made up of 151 Robinsons Supermarket stores, 38 The Marketplace stores, 16 Shopwise stores, 125 Robinsons Easymart stores, and 19 No Brand stores; Drugstores with 651 Southstar Drug stores, 403 Rose Pharmacy stores, and 2,127 TGP franchise stores; 50 Robinsons Department Stores; 201 Handyman stores and 29 True Value stores in DIY; 408 Uncle John’s convenience stores; as well as 84 Robinsons Appliances stores, 35 Savers Appliances stores, 42 Toys R Us stores, 93 Daiso Japan stores, 20 Super 50 stores, 11 beauty stores, 10 Pet Lovers Centre stores, and 2 lifestyle sneakers stores called Sole Academy.

Our 23% stake in O!Save, established in 2021, allows us to participate in the hard discount grocery market. Most of O!Save’s stores are currently located in Luzon, particularly in Bulacan, Pampanga, Rizal, and NCR, and they are poised to open more stores across the Philippines currently supported by two distribution centers.

Sustainability at the Heart

We take sustainability seriously at Robinsons Retail. As we further embed sustainability in the way we do business, our sustainability strategy has also evolved, with emphasis on three key areas: Responsible Retailing, Relationship with Our People and Communities, and Robust Environmental Action – Robinsons Retail’s 3 Rs of Sustainability.

This year, we engaged over 2,000 MSMEs and over 2,200 small-hold farmers either through our Farm-to-Table Program or our other initiatives that support local and social enterprises. Our network of over 500 TGP franchisees not only makes quality and affordable generic medicines available to everyone, but also helps empower local entrepreneurs in contributing to their local economies.

We reduced over 30% of our direct greenhouse gas emissions intensity since 2021 primarily through the continuous phaseout of refrigerants with higher carbon footprints, upgrade and replacement of refrigeration and air-conditioning units, and the expansion of our use of water-loop refrigeration systems. We have also undertaken an assessment of 83 facilities for exposure to climate hazards like extreme typhoons, extreme heat, flooding, and sea level rise, which we will be using to inform and reinforce our business strategy and continuity plans.

This year, we were able to partner with volunteer groups and nonprofit organizations whose work in creating meaningful impact in society continue to inspire us to do better every day: Ateneo Center for Educational Development, Association of Mouth and Foot Painting Artists Philippines, Cancer Warriors Foundation, Caritas Manila, Childhope Philippines Foundation, Communities Organized for Resource Allocation, Feeding Metro Manila, The Foundation Foundation, Friends of Hope, Leah Borbon Hope of Angels, Lions Club of Marikina Valley, Philippine Foundation for Breast Care, Right Start Community Development, Save Philippine Seas, Scholars of Sustenance, Tahanang Walang Hagdanan, Thrive Foundation, Virlanie Foundation, World Vision Development Foundation, and the UP Men’s Basketball Team, among others.

Since 2017, in collaboration with the Gokongwei Brothers Foundation, we have been able to support close to 200 pharmacy students across the country to complete their college education. This year, we are very proud of our 25 scholars who passed the 2023 Pharmacy Licensure Examination and we will continue to support them on their journey to becoming pharmacy professionals.

We marked a significant milestone in 2023 as we celebrated our 10th anniversary as a publicly listed company. We celebrated the occasion with a bell ringing ceremony at the Philippine Stock Exchange in November with the Directors and Officers of the PSE and Robinsons Retail. Our efforts for excellence in corporate governance were also once again recognized by the Institute of Corporate Directors with a Golden Arrow Award as we continue to bolster our corporate governance standards and practices.

Our continuing efforts in doing good for our people were also recognized by the Philippine Daily Inquirer and Statista with our inclusion in the 2024 edition of “The Philippines’ Best Employers”. From a list of over 2,000 employers and evaluated recommendations from around 16,000 employees, Robinsons Retail was recognized as one of the country’s 300 most preferred employers. We will continue to strive
to be a top employer of choice by nurturing a workplace that values meritocracy, collaboration, inclusivity, agility, and innovation.

Looking Ahead

In all, our various initiatives support our diversified business strategy, which hopefully benefits both consumers and businesses across the Philippines. Encouraged by our financial performance in 2023, we will sustain our positive trajectory in 2024 where we expect all our formats to see continued steady growth. We are looking to accelerate our store rollout program and target to open 100 to 120 net new stores across the Philippines. We will continue to improve store efficiency as well as increase the share of premium and imported products to further underpin margin expansion.

As we look ahead, we are confident in sustaining our growth despite the multitude of external risks we continue to face. Guided by our time-tested retail blueprint that emphasizes customer-centricity, we intend to remain agile and responsive, ensuring that our products and services constantly evolve in tandem with changing market dynamics.

We also recognize the significance of balancing the needs of our retail customers with the interests of our diverse stakeholders. Therefore, we also commit to conducting our operations sustainably by integrating responsible sourcing, ensuring product and service excellence, fostering employee development, and taking proactive environmental measures into our business practices.

2023 has been a meaningful year for us at Robinsons Retail and we are excited to see how 2024 unfolds. Together, we hope to continue to make a difference to the people and communities we serve as we create a more sustainable future.

Here’s to another meaningful year ahead as we bring more moments of love and joy, one shelf at a time.