Robinsons Retail Holdings, Inc.

Thank you for joining us to review Robinson's videos and other reports for the first quarter of 2026. I'm Angela Torres, the company's corporate planning and investor relations officer. So the speakers for this call are in the following. It's a family call, our president and CEO, Mr. Christine Juarez, our managing director for the big bar maps of the food segment. Ms. Maria Casostomo, group general manager of the drugstore segment. Ms. Carmina Pizan, Group General Manager of the Provincial Department for Boiseras Solar Academy and Station. Ms. Beth Subono, Group General Manager of the DIY Pigment and Pets. Ms. Tim Sanchez, Deputy General Manager of Boiseras. Ms. Mylene Casiban, our CFO, and our Chairman, Ms. Robina Gokunwepe, and Advisor for Corporate Planning and Machine and Defending are also here with us for the call. Flash is the agenda for this afternoon's meeting. 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 on your Zoom dashboard to type in your questions. Please limit initially to a maximum of three questions, including your follow-ups. 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 your questions live. With that, I will turn you over to Mr. Stanley Paul, our President and CEO, to discuss our financial highlights. Good afternoon, everyone. For our first quarter financial highlights, net sales increased by 10.3% to $52.8 billion, driven by a 4.1% same-store sales growth, new-store contributions, and the full-quarter consolidation of premium rates. The same-store sales growth was driven by higher market prices in the food and our drugstore segments. This resulted in EBIT increasing by 3.7% to $2.4 billion, for net earnings grown by 6.2% to $1.3 billion. Net income for parent declined to $489 million, driven by higher interest expenses and losses from associates. This section shows Facing the breakdown of our T&L for the first quarter, we'd like to highlight that net sales with poor earnings were up by 10.3% and 6.8% respectively. And effective this year, we have reclassified close rally from the food segment to a new segment for B2B to better reflect the underlying performance of our food segment's four banners. All operating segments achieved positive net sales growth in the first quarter, The double-digit growth in specialty scores, B2B and drug scores. The notable decrease in specialty scores was due to the consolidation of premium rights. Food and drug stores continue to be our largest segments, accounting for 73% in the first quarter. The other segments may be the department stores, DIY is also here to be contributed to the remaining 47% of net sales and 10% of the bid gap. We opened nine new stores in the first quarter, mostly under the food and press store banners, meaning our total store count was 2,782. Our store count is now comprised of 305 food sales and stores, 2187 drug stores, 51 department stores, 234 DIY stores, and 505 specialty stores. And in addition, we have 2,167 franchise stores of PGP. Passing you over to Tim for the food segment.

Good afternoon. For a life-for-life comparison, prior year food segment figures were sophisticated to exclude the impact of Alzheimer's. Food segment net sales rose 7.4% to $28.3 billion, underpinned by 3.9% sales store sales. Which was supported by novel digits increasing basket size. The bid does move faster than revenues up 11.8%, to $2.7 billion, reflecting higher gross profit from vendor support and increased penetration of important products out of its cost controls. Handing over to Mariana for her assessment. The cost per segment started the year with net sales growing double digits in the first quarter, reaching $10.4 billion. FSSG rose to 8.5% driven by sustained demand for prescription and OTC drugs and implants. EBITDA climbed by 5.1% to $847 million, a growth in the top-line push on the impact of higher operating expenses for store expansion. As far as the stores, FSSG peaked at 1.5% in the first quarter after recidivist performance in the design. was offset by the intense competition from new players in other regions. Meanwhile, incremental sales from the new store in Cagadian, Mindanao, which opened in April last year, lifted those of net sales from 3.5 billion up to 4.1% year-on-year. This has declined to 31 million in the first quarter given subdued SSG amid higher fixed costs. Turning over to David.

Year-wide, the coordinate 4.6% net sales moved in the first quarter. reaching 2.8 billion Teslas, given by the introduction of new items and successful marketing events. SSSG came in at 3%, a turnaround versus minus 1.9% last year. Adidas came in at $245 million, higher by 2%, as the recovery insurance was offset by lower distribution center income and an increase in rent and month-to-month costs, trading over $2 billion.

whose specialty segment net sales dropped 48.5% to 4.6 billion due to the consolidation of premium rights and streamed growth for the appliances, oils, pests, and light plastic makers' businesses. However, SSSG declined due to weakness in mass merchandise. Excluding premium rights, its specialty segment net sales rose by 1.6%. The business declined to 150 million, a better category based on appliances and the contribution from premium rights. were weighed down by clearance activities in mass virginites. Are you ready to move on? Yes, thank you. Moving on to the working capital, RSI's cash conversion cycle declined to 24.6 days in the first quarter, driven by lower inventory days of 80.1, reflecting FKU rationalization. In terms of balance sheets, Net debt increased to $29.3 billion as of March 31 following the acquisition load related to the DeFi share bypass in May 2025. The average remains manageable with net debt to exit at $0.41. ROE was large at the change of 6.8%. In terms of capex, organic capex amounted to $1.2 billion. up by 27.4% reflecting store expansion and renovation duties. Food accounted for 66%, followed by drugstore as well. So, I'll turn you over to Stanley.

Now, allow me to update you on some of our minority investments from the OCE Blue Time Rosarian EPI. OCE's net sales jumped 2.2x to $195 million in the first quarter of 2026, digit-same-source US code, and graph-score is sunshine. Both teams entered the first quarter with 808 base scores. Data is configured based around from 6.1 million to 9.1 million in first quarter. The search in Boston accounts how P.O.S. growth in total construction value and their operating incomes last year. Those are its total platform value, or the value of its business line, increased by 21%. to $266 million due to the pandemic growth in coverage. Lastly, due to a registered revenue growth, 13.9% in the first quarter, supported by double-digit low growth and higher fee income. Net income rose by a modest pace of 1.7% given higher OPEX and provisioning costs. Conformer development, the SmartSwing 7, J.E. Holdings, RHI's largest shareholder, expressed its intention to conduct a tender offer to reach 95% ownership in RHI for the domestic proponents with a view to voluntarily delist the company. RHI's board of directors subsequently approved this voluntary delisting of its shares to the stock exchange on the same day. J.E. Holdings will withdraw the tender offer if 95% ownership threshold is not achieved and there will be no second round of the tender offer. The proposed voluntary listing will be voted on at the 8-27th annual shareholders' meeting, requiring approval from at least two-thirds of outstanding shares with no more than 10% assembly. The transaction is also subject to regulatory approvals from the SBC, PSB, and MCC. Yesterday, the RSI board approved a cash dividend of two pesos per share, which is This independent on the tender offer price of 48.3 pesos. We are maintaining our full year 2026 guidance of 130 to 174 additions, primarily from the food and drugstore segments. Same-store sales growth at 2 to 4% and organic effects of around 5 to 7 billion.

And our gross margin target is 24.6 to 24.8% for the full year.

We know that there could be a downside risk to this guidance if the company can do the pieces too long. And to mitigate potential impacts, we have implemented various austerity measures, including school rationalization, protection rights, tighter manpower controls, rental negotiations, and more targeted marketing activities among countries. This ends the presentation for the first quarter results. We will now open the floor for Q&A. Good afternoon, everyone. The first question is from Carissa, already from the Q&A box. So her question is, supermarkets at San Codon, can you provide sales, GP, EBITDA, and SSSD in the first quarter? How much of supermarkets SSSD was driven by traffic and bucket signs? And for San Codon, what was SSSD and how was the GPM trend in the first quarter? Okay, so food segment or supermarkets, including Uncle John's, the end of sales up 7.4% to $26.6 billion. Gross profit margin of 24.6%. FFSG of 3.9%. It meets the margin of 9.6%. This is supermarkets next to Uncle John's. And for Uncle John's only, sales of about 1.7 billion in first quarter. This is up 7%. It has an SG of 4.4%. It meets the margin, sorry, GPM of 59.6. And it meets the margin of 8.1%. In terms of basket size and transaction count, For food, double-digit basket size growth in the first quarter. Traffic was down around 6%. Okay. Follow-up questions from Teresa. What drove the turnaround in the IOA source, SSST?

It's basically introduction of new items and some marketing events.

Okay, thank you. Next question, how do you see the Middle East conflict affecting or impacting the company sales and margins? In terms of top line, we did see some slowdown in April, but we also wanted to point out that April last year was actually a strong month because of connection-related spending. But there could be some impact on the consumer already, although our stakeholders' businesses are still doing okay. It's the discretionary formats that are seeing some challenges. In terms of costs, there are some vendors who would be increasing prices, but our strategy here is to pass on costs eventually. So we're actively looking at how things will play out. And as I mentioned earlier, there are austerity measures also in place for us to protect profitability. How did sales trend in March and so far in April? Which formats are doing well and which are more challenging? Yeah, for March, it was... Pretty good month as well. Actually, Jan, Feb, and March were all resilient. We did see, yes, the impact on spending in the first quarter. But in April, we did see some slowdown, but essentials are still holding up, doing well. It's the discretionary format that could be affected if things play out differently. on a prolonged basis. SSSG for aprons? Yeah, it's around 4% SSSG. Next question is from Jeanette. Thank you for the briefing. How are you currently impacted by the high fuel costs? How are you managing this cost pressure? I think logistics would be around 1%, transportation would be around 1% of sales. We're doing a lot of cost-offset measures across the business to manage this impact. But this is a reality we have to face. But again, we have a lot of Michigan super implementing across the business to manage this impact over the near term. What drove the basket-sized growth of food segments in the first quarter?

Important items are actually growing global pitches. across all categories, we actually have seen as well growth for T1. We have seen the slide for Dane, also our pantry loading.

Thank you. Sorry, we missed this comment. Did you say also John's SSSG for April was 4%? Yes, that's correct. The next question is from Matthew Rojas. Thank you for the briefing. Did you see an increase in private label purchases on the food side And are you still seeing supplier support from your doctor?

Yes.

Yes and yes. Next question is from Denise of Call Financial. Could you share the 1Q interest expense amounts related to financing of BPI and the reform-related loans, respectively?

It's around $700 million.

Thank you. Thank you. So at this point, there are no questions. If you still have follow-up questions, please do so using the raise hand function or you may simply type your questions in the Q&A box. Okay. Can you please provide some color around the strength of Oncogon's SFSG in April Because we thought this was for the discretionary standard, which is sweet. Uncle John's is actually not categorized under discretionary. It's staples. And it's under the food segment.

And categories growing currently are non-alcohol beverage and the alcoholic beverage categories.

Thank you. Okay, so at this point, there are no more questions coming in. Okay, so we have a follow-up from Rainier Yu. Is the recovery of DIY likely going to be sustained for the rest of the year?

Okay. We think so. Okay.

Thank you. Okay, what is the plan for opening for orthodontics this year? Yeah.

Positive resource.

50 stars to Taranin. Okay, when will the copy of the parent's opinion for the tender offer be disseminated to shareholders? So that's actually part of the definitive information statement that we uploaded on PSE Edge about two weeks ago, April 15, a little over two weeks ago. So you can download that on PSE Edge. Number two, Why not standard practice in the Philippines? Does RHI board have any plan of endorsing the tender offer? Answer is no. What we got approval for was for the voluntary delisting of the shares. So, tender offer is being conducted by J.T. Holdings, which is a different entity. Next, Thank you for the presentation. Have you seen a spike in sales for premium bikes? No, not necessarily. I guess it's also driven by certain restraints on supply, but we were informed by the measurement of the supply will normalize within April and May this year. Thank you, sir. Second question, I might have missed it, but where was Rosario reclassified? So it was previously under the food group, but for starting this year, we have reclassified it to a new segment called B2B. This is essentially to better reflect the operating performance of our food business. And then the next question is, do you hedge for FX?

Yeah, we do not have war wars with the banks, but we have a natural hedge because we have a business center where we, you know, are reaching dollars and the rest, you know, any difference, we pass it on to the customers and price.

We have a follow-up. Thank you. We have a follow-up question from Jeanette of J.P. Morgan. On the plan listing of the company, could you give us an update on the approvals from regulators and any estimated timeline you can share? Hi, Jeanette. The first milestone that we're looking at really is the May 12th annual shareholders meeting. So that's in a little less than two weeks' time from today. So this is when shareholders will vote for the voluntary listing. And depending on the outcome, that's when the vendor offer could proceed. So it's May 12th, the first milestone. That's what we can share now as of today. At this point, there are no more questions coming in.