Listed Metro Retail Stores Group, Inc. (MRSGI) reported a 42.2% year-on-year increase in second-quarter attributable net income, reaching P188.9 million, as margin improvements cushioned the impact of modest revenue growth and rising operating costs.

The figure marked an increase from P132.9 million recorded in the same period a year earlier, according to the company's quarterly financial disclosure filed with the Philippine Stock Exchange on Thursday.

Gross revenue for the quarter edged up to P10.07 billion from P9.99 billion, while gross expenses remained nearly flat at P9.72 billion compared with P9.70 billion a year earlier. Income before tax climbed 41% to P247.4 million from P175.5 million, and net income after tax advanced 40.3% to P186.4 million from P132.9 million.

For the first six months of 2026, MRSGI's attributable net income rose 48.2% to P216.75 million from P146.27 million in the prior-year period, driven by stronger sales and enhanced margins that offset higher operating expenses.

The results underscore how mid-sized Philippine retailers are navigating an environment of subdued consumer demand, where top-line growth has been limited by persistent inflation. MRSGI, founded by the Gaus family in Cebu and one of the largest homegrown retailers in the Visayas, competes against larger national chains such as SM Retail and Robinsons Retail Holdings, which benefit from greater scale and broader geographic coverage.

Consolidated net sales for the six months ended June grew 3.1% to P19.36 billion, while comparative store sales inched up 0.2%. Food retail sales increased 3.8%, and general merchandise sales gained 1.2%.

Gross profit margin improved to 22.6% from 21.8% a year earlier, which the company attributed to margin gains across both food retail and general merchandise segments, along with a more favorable sales mix. The expansion suggests MRSGI has been able to pass through selective pricing adjustments and improve category management despite cost pressures across the retail sector.

Operating expenses rose 4.8%, reflecting higher overhead costs and expenditures tied to new store openings amid inflationary pressures and the ongoing conflict in the Middle East, the company said. Operating income for the first half climbed 22.8% to P339.4 million.

MRSGI President and Chief Operating Officer Joselito Orense said the company plans to continue expanding its retail network and sharpening its focus on operating efficiency through the second half of the year.

"As we move into the second half of the year, we remain committed to bringing goods closer to communities, creating local jobs, and continuing operational efficiency to deliver sustained value to our customers and shareholders," he said in a statement.

MRSGI reported that it broadened its store network in the Visayas region with new locations in Naval, Biliran, as well as Lapu-Lapu City and Mandaue City in Cebu. The retailer now operates 84 stores across Luzon and the Visayas. The expansion into secondary cities and provincial markets reflects a broader trend among Philippine retailers seeking growth outside the increasingly saturated Metro Manila area.

The company is also upgrading its existing stores, including the development of larger supermarkets and hypermarkets. In July, MRSGI relaunched Metro Colon, its pioneer store in downtown Cebu, following a round of renovations.

— Alexandria Grace C. Magno