Robinsons Retail Holdings, Inc.

Good afternoon, everybody. Thank you for joining us to review Robinson's details and audit the results for the first quarter of this year, 2025. I am Gina Dipali, the company's investor relations officer. The speakers for this call are the following. Stanley Koh, our president and CEO. Eileen Kasiban, our CFO. Christine Tuarez, the managing director of the big formats for the full segment. Joanne Arceo, the Group General Manager of the Drugstore segment. Selena Chua, the Group General Manager of Robinsons Department Store, Toys R Us, Solacanide Espacio. Ted Sobono, the Group General Manager of DIY and Vents. Joven Santos, the Group General Manager of the Appliance segment. Chairman Romina Gautamite is also on the call. Last question. It's the agenda for this afternoon's call. We will provide an overview of our financial performance and share key updates across our organization. As a reminder, for the Q&A session, please use the Q&A function on the Zoom dashboard to write in your questions. Please leave initially the maximum of any questions. And you can log in if you have additional questions. With that, I will turn you over to Stanley.

Thank you, Gina. Good afternoon, everyone. Here are the highlights by results for the first quarter of 2025. Consolidated net sales increased by 4.2% to $47.8 billion. Lended same-store sales growth came in at 3%. Cross-profit accelerated by 6.2% to $11.6 billion. EBIT increased by 2.7% to $1.9 billion. And net income to parent dropped 85%. to 760 million as reported in the one-time gain from the PPI-R bank merger last year. Consolidated net sales came in at 47.8 billion, up by 4.2%. Same-store sales growth accelerated to 3% from last year. Growth was supported by additional selling days as Holy Week shifted to April, partially offset by the lack of one day in February this year versus last year, as 2024 was a late year. The absence of an extra day reduced February sales by approximately 3.6%, with February SSSG adjusting to 4.4% when excluding the late year impact. The business units that posted above average growth for the period were drugstores, department stores, and specialty stores. Now, a deeper look at our P&L. Even grew by 2.7% to 1.9 billion, driven by an increased category mix and an improved category mix and continued vendor support, which helped offset the one-time increase in salaries and wages arising from enhanced recognition of work leaves. and other employee benefits and full-parter effect of the increase in minimum wage last year. Net income attributable to parent declined to 760 million, primarily due to the high base last year, which included a substantial gain from the PPI RBI measure, including one-time items for earnings increased by 4.9%, to 1.2 billion due to higher EBIT and lower interest expense. In terms of segment contributions, the core stable businesses accounted for 81% of total sales and 86% of total EBITDA. Meanwhile, our discretionary formats comprised 19% of total sales and 14% of total EBITDA, respectively. As of March 2025, our store count reached 2,448 comprising 760 food segment stores, 1,131 drug stores, 50 department stores, 225 DIY stores, and 282 specialty stores. Additionally, we have 2,116 franchise PGP stores. Turning you over to Tim for the food segment.

The food segment recorded net sales growth of 3.4% to 2.9 billion, driven by 3% same-store sales growth. supported primarily by the third consecutive quarter of increased basket size. Gross margin improved by 40 bps to 22.7, driven by higher penetration of private label and imported products, as well as higher vendor support. EBITDA grew by 3.3% to 2.4 billion, broadly in line with top-line growth as gross margin expansion offset the increased impersonal cost. Next speaker will be Joanne for the drugstore segment. Good afternoon. The drugstore segment posted 7.5% increase in net sales, driven by 3.2% same-store sales growth and the contribution from 59 newly opened stores. Gross margin expanded by 140 bps to 22.3%, supported by stronger vendor funding and increased penetration of house grants. EBITDA rose by 7.1%. to 806 million as the solid downtime growth helped offset the impact of higher operating expenses related to store expansion and increased DC costs associated with new systems and facilities. Turning over to Selina. Net sales for the department stores that went rose by 5.6%, driven by strong same-store sales of 5%. Growth was supported by strong performance of shoes, Beauty and apparel supported by marketing events such as Shoes and Bags Travel Fair and International Women's Month. Broad's margin remained stable at 31.4% as promotions were offset by higher vendor support. Ibiza increased by 3.5% due to the segment's strong top-time performance. Turning you over to Ted for the DIY segment.