Robinsons Retail Holdings (RRHI) generated lesser revenue in 3Q20 as compared to the same period last year. Revenue for RRHI in 3Q20 was at 34.6 Billion Pesos. That is 4.3 Billion Pesos lower than last year. That effect of the pandemic to RRHI is just a scratch.
The lower revenue caused RRHI to burn cash on operations as it lowered its trade payables by 3.3 Billion Pesos from the end of the 2Q20. RRHI burned cash on operating activities of around 1 Billion Pesos during the 3Q20. But for the 9M20 overall it generated cash from operations of 3.1 Billion Pesos.
Generating cash from operations, RRHI did not need to raise capital to propped-up its cash balance and its balance sheet. As of September 30, 2020 RRHI has a cash balance of 15.6 Billion Pesos. On top of that are debt and equity financial assets valued at 13.9 Billion Pesos. While its debt is only a short-term loan marked at 3.1 Billion Pesos.
RRHI with a fortified balance sheet coming into the pandemic took advantage of opportunities acquiring the 300-store Rose Pharmacy.
Lately the market has been pivoting to the laggards, dumping pandemic winners such as RRHI and PGOLD. That should be an opportunity to accumulate the pandemic resilient RRHI and PGOLD.
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Disclaimer and Disclosure: This analysis is an independent viewpoint on publicly traded stocks in the Philippine market. Accuretti Systems Inc. trades stocks in the Philippine market.