Staying Alive: MerryMart Holds Ground as AllDay Plunges

MANILA — Once hailed as pandemic darlings for their grocery and convenience retail models, MerryMart Consumer Corp. (MM) and AllDay Marts Inc. (ALLDY) have taken sharply different paths in 2025.

Financial Scorecard:
MerryMart posted a modest ₱21.3 million net income for the first nine months of 2025, up 2.9% year-on-year, despite a 6.8% dip in revenue to ₱5.36 billion. The company cushioned weaker sales with higher supplier rebates and trade supports, lifting gross profit by 8.7%. Operating margins remain thin at about 1%, but MM stayed in the black while continuing store upgrades and expansion.

AllDay, by contrast, swung to a ₱86.99 million net loss as sales collapsed nearly 45% to ₱3.91 billion. Finance costs surged more than 270%, eroding operating gains and leaving interest coverage at a precarious 0.19x. Management has reallocated IPO proceeds to working capital and hinted at network rationalization to stem the bleeding.

Balance Sheet Snapshot:
MM carries heavy leverage with ₱7.92 billion in loans and a debt-to-equity ratio of 1.79x, while ALLDY maintains lighter debt at ₱2.32 billion and a healthier 0.46x ratio. However, ALLDY’s cash reserves plunged to just ₱152 million by September, compared to MM’s ₱1.33 billion.

Stock Performance:
The divergence is stark on the trading floor. MM shares closed at ₱0.41 on November 20, down about 36% year-on-year, but relatively stable year-to-date. ALLDY, meanwhile, cratered to ₱0.033, marking a 74% YTD collapse from its early-year levels. A comparative chart shows MM’s line trending moderately lower, while ALLDY’s curve nosedived from mid-year onward.

Investor Take:
The contrasting trajectories underscore a broader theme: pandemic-driven retail optimism has faded, and survival now hinges on cost discipline, liquidity management, and strategic pivots. MM’s incremental profitability offers a lifeline, but its high leverage poses risks. ALLDY faces a steeper climb, needing to restore sales momentum and rein in finance costs to regain investor confidence.

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