Metro Retail Stores Group (MRSGI) saw its revenue declined by 5.6 Billion Pesos to 31.4 Billion Pesos in 2020. To match the revenue decline MRSGI cut its costs from 36 Billion Pesos in 2019 to just 31.7 Billion Pesos in 2020. However, the cost cuts were not enough resulting to an operating loss of 301.5 Million Pesos.
Despite the net loss, MRSGI was able to extract cash from operating activities of 475.4 Million Pesos. The cash from operations would have been higher but MRSGI reduced its trade payables by 834.5 Million Pesos.
MRSGI availed of a short-term loan of 1.5 Billion Pesos in 2020. MRSGI didn’t need the loan as cash, cash equivalents and short-term investments totals 3.5 Billion Pesos. The said loan is the only interest-bearing indebtedness of MRSGI.
Last year, MRSGI declared a dividend of .06 a share. At current share price that dividend implies a yield of 4.5%. It is most likely that MRSGI will maintain the 2019 dividend distribution rate as its cash balance remains healthy.
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