Robinsons Retail Holdings, Inc.

Thank you for joining us to review Providence Retail's unaudited results for the first nine months of 2025. I'm Angela Torres, the property planning and investor relations officer. The speakers for this call are Stanley Kuo, our president and CEO, Christine Juarez, our MD for the big format of the food segment, Joanne Arceo, our group GM for the drugstore segment, Selena Chua, Our advisors for the Robinson's department store, Voiceras, Tola Academy and Fashion Group. Ted Toluono, our group GM for the DIY segment and Vets. And Don Don Gao, our GM for Robinson's Appliances. Our chairman, Ms. Romina Gomoyembe, an advisor for corporate planning, Gina DeTalum, are also in this call. So flash this agenda for this afternoon's call. So we will provide an overview. of our financial performance and share key updates across the organization. As a reminder for the Q&A session, please use the Q&A function in the Zoom dashboard to type in your questions. Please limit to a maximum of three questions, including follow-ups, and you may queue back into the Q&A box for additional questions. You may also use the raise hand function if you would like to ask questions like, So with that, I turn you over to Scott McCall, our CEO, to discuss our financial thoughts. Here are the highlights of our third quarter 2021 results. Consolidated net sales increased by 4.3% to 15.8 billion. Blended central sales growth of 1.6%. Cross-profit growth by 5.9% to 12.5 billion. EBIT grew by 3.1% to 2.3 billion. net earnings increased 13% to $1.5 billion. Net income to parent down by 13.5% to $872 billion due to higher interest expense and enterprise losses from wholesale. Earnings per share rose by 12.9% to $0.79 per share due to lower number of outstanding shares from the PLI buyback. For the first nine months of 2025, consolidated Lended same-store sales flow registered at 3.1%. Cost profit rose by 6.2% to $36.4 billion. Event grew by 4.5% to $6.6 billion. Order trainings improved by 3.9% to $4.2 billion. Earnings per share declined 2.45% per share. Now, if we look at our P&L, net sales grew 4.3%, 50.8 billion in the third quarter, bringing nine-month sales to 149.3 billion, up 4.8%, despite heavy rainfall affecting portfolio. Same short sales growth still grew by 1.6%, year-to-date SSG at 21.1%. Even close by 3.1% to 2.3 billion in the third quarter, and by 4.5% to 6.6 billion year-to-date, driven by improved category mix and continued vendor support. The income to parent declined by 13.5% to 807.2 billion in Q2, due to higher interest expense from the EFI retail buyback, and higher associate losses Earnings per share, however, increased by 12.9% due to lower shares outstanding from the shares by half of their BFI legal shares last year. Year-to-date net income apparent reached 3.1 billion, but lower by 60%, reflecting last year's high base that included the PPI R-Bank merger gains. For earnings, however, rose 3% to 1.5 billion in third quarter. 4.2 billion here today, up by 3.9%, supported by the growth in eBit. All segments posted positive net sales growth in the third quarter, except for the department stores, which was impacted by the earlier starting school year. Drug stores delivered strong performance, exceeding 12-digit growth in the third quarter. The core staple of the businesses, food and drug stores, accounted for 80% of total net sales and 85% of total EBITDA for year-to-date September. Meanwhile, our discretionary formats, namely the department stores, the annual specialty, comprise 20% of net sales and 15% of EBITDA, respectively. In the first nine months, we opened 48 new stores, mostly under the food and drug store banners. They are a total score count of 2,501. Our score count is comprised of 777 full segment scores, 1,158 short scores, 51 department scores, 299 PAY scores, and 286 specialty scores. In addition, we have 2,118 franchise scores of PPP, and most store openings are expected with the coming months. Passing me over to Dean Perez for the full segment. Thanks, Frank. Food segment sales rose by 4.5% to $31.1 billion in the third quarter of 2025, driven by same-store sales growth of 2.8% and the contribution of 19 newly opened stores. Same-store sales growth was supported by higher basket size. Year-to-date sales reached $90.2 billion, up by 4% during the year. Our gross profit grew by 7.8% to $7.3 billion in the third quarter and 5.6% to $20.7 billion in nine months. outpacing revenue growth. And this also supported the increased vendor support and higher penetration of private label imported products. This led to a deeper growth of 6.6% to $2.7 billion in the third quarter and 5.2% to $7.7 billion in nine months. I turn it over to Joanne for growth scores. The growth score segment posted double-digit sales growth in the third quarter, reaching $10 billion, driven by same-store sales growth of 5.1%. and contributions from 57 new stores. For year-to-date September, net sales increased by 9.8% to $28.9 billion. Gross profit rose by 14.9% in third quarter, and 15.4% year-to-date, outpacing revenue growth. This was supported by price adjustments, higher penetration of house brands, and improved vendor support. As a result, EBITDA grew by 14.2% to $899 million in third quarter, and developed 0.3% to $3.5 billion year-to-date. Moving over to Sydney Health. Department store net sales declined by 11.7%, so $3.3 billion in the third quarter due to the shift in school opening to June this year from July last year. Store renovations also in preparation for the fourth quarter season and skip competition. Year-to-date, Net sales still rose by 2.1% to $11 billion, driven by the opening of Robinson's department store, Pagadigan, in the second quarter. As a result, gross profit declined by 10.5% in the third quarter. However, gross profit for the first nine months of the year still grew by 3.1%, faster than net sales growth, driven by a favorable category mix and strong vendor support. EBITDA declined to $535 million in the first nine months, reflecting higher operating costs. Let me turn you over to Ted for the DIY segment. Our DIY segment hosted a 2% growth in head sales in the third quarter, to $2.9 billion, supported by Hibs Forest and a friend around with SSSG, which turned positive at 1%. YTP head sales reached $8.6 billion, or that year-on-year. Gross profit was flat at 951 million in the third quarter and 2.8 billion in the first nine months. But markdowns were affected by increased private label penetration and introduction of new higher margin items. However, EBITDA declined to 916 million pesos in the first nine months due to higher open funnel and profit improvement at the distribution sector. I cannot remember who Limits for the specialty segment those 7.1% return to $3.5 billion, fully up-to-date limits yield to $10.6 billion. All formats offer positive gains, with toys, mass merchandise, and right-side sneakers delivering lower digital growth in January. Appliances return to positive lows in $9 billion due to the trade demand in home entertainment and home appliances. Gross profit increased by 2.8% to 3 billion in 9 months, lower than the revenue growth, weighted down by clearance activities in appliances. Evita declined to 423 million due to higher OPEX. However, appliances Evita improved quarter-on-quarter up by 14.1% with market recovery. I'll turn it over to Galeon. Our cash conversion title rose to 29.9 days, driven by higher inventory days at 81.4, as stocks of in-debt products and important items increased to meet strong demand for the peak season, and also our payable days were lower at 56.0. On our balance sheet, our net debt as of September 30 increased to 30.1 million, This is largely due to the acquisition loan for the BFI retail cherry purchase, which she did last May. Despite this, our balance sheet remains fairly ugly, with an inept debt-to-equity ratio of 0.4x. Return on assets and return on equity normalized to 3.4% and 6.9% respectively. This is following the absence of a one-time gain from the BPI and Robertson stock merger, which was booked in early 2021. In terms of our money topics, this amounted to 3.3 billion as of 9 months. This is up around 4% year-on-year. Hold accounted for 61%, followed by growth score segment of 13% share. So the balance is accounted for by the discretionary formats. And now I'll turn you over to our policy vote. Now, allow me to update you on some of our minority investments in the OSAE growth and growth side. OSAID's store count in the Philippines more than doubled to 662 in nine months from 318 last year. This led to net sales rising by 2.8 to $349 million. Meanwhile, OSAID's customer base climbed to 7.5 million. total platform value or the value of all its business lines increased by 21% from last year to $693 million gaining a total growth in corporates. From there we have taken on some key corporate developments across the business. So since eBay was named one of the one of my magazines from We were one of the only 10 Philippine firms on the global list. Southstar Jobs welcomed 13 Eurodivergent employees in August, marking their transition to regular employment after completing training under Project Incredibles, part of Southstar's ongoing commitment to inclusive hiring since 2017. On our guidance, we are maintaining our full-year 2025 guidance, targeting 130-170 net new stores, mostly from the food and drugstore segments, where a bulk of the stores will be open this quarter. We are aiming for a blended soon-source CSQ, 2-4%, 20-30-bitch expansion in gross margin, and allocating 5-7 billion for organic topics. This ends our presentation for our nine-month results. We will now open the floor for Q&A session. We begin the Q&A with the questions we received ahead of time. So from Felix of Philippine Equity Partners, can you give us an update on the remaining balance of the debt used for the acquisition of the DTI shares? Also, what is the 925 interest related to this? Thanks for the question. Out of nine months, outstanding balance on the ZPI-related acquisition loan is $10.8 billion. So this is unchanged versus June 2025. Interest expense is $500 million. The second question, are all remaining treasury shares coming from the buyback of BFI ownership treasury shares. Okay, so our treasury shares consist of two components. The first one will be 158 million shares. This is coming from the regular buyback that we started last March 2020. And then we have also around 315.3 million shares from the BFI in the bear buyback. So it's a component of a combination of two types of buybacks. So total shares under treasury has come about 474 million. But if you will recall, we are currently in the process of retiring the 158 million shares. This is from the regular buyback program. We sought shareholder approval last September 16th to cancel or retire these shares. And it could take about six months to complete the entire process, at least six months. For the final question, how much dividends did RHI receive from its 6.5 state and DPI? Okay, so the dividends, the dividend income from this state is about 680 million pesos in nine months. For questions from Nadine Bautista of J.D. Morgan's, What is the SSSG of the supermarket and CVS banners in the third quarter of 2025 respectively? How are basket size and transactional kind of pending in both sub-centres? Thank you for the question, Sandeep. For 3Q of supermarkets, SSSG is about 3%. And for Humphrey Johns, in 3Q, it's negative 1%. In terms of basket size, in 3Q for supermarkets, we're up about 7% to 8% versus last year. And for Hondo Johns, we're up by about 1% in 3Q versus 3Q to 3Q. Another follow-up from the interview is, in the follow-up, can you share color of trends and intensity of supplier support in 3Q 2025 versus 2Q 2025 and N2024? Which product categories are seeing higher than average supplier support? Okay, sequentially from 2Q to 3Q, we saw an improvement in supplier support. So generally in the third quarter and in the fourth quarter of every year, supplier support comes up. This is particularly because in preparation of the holiday, it takes even. On a year-on-year basis, for a full year, we should be seeing an increase in supplier support. The product categories where we're seeing more supplier support would be in the food segment, or in the food categories, Again, this is largely related to business-related shopping, but the other categories, the non-food categories, are also seeing very decent supply and support. This is Joe from the Dean. On wholesale, what is SSSG in 3G 2025, and what is the trend between market size and transaction count? Can you share the latest EBITDA figures for wholesale? What is the target EBITDA rate even for wholesale? Sorry. Okay. Maybe we can have your Ness answer the questions. Hi, Ness.

Yes, sure. I'm here. Thanks so much. Thanks for the question. I appreciate that. So our SSSG is at around 19%. Can you hear me? Hello?

Okay. Okay, go ahead.