Puregold nets P1.05B in first quarter

MANILA, Philippines – Puregold Price Club, Incorporated, the country’s second largest grocery retailer, reported a consolidated net income of P1.05 billion ($23.44 million) for the first quarter of 2015.

This is up 11.7% against the P943 million ($21.05 million) net income in the same period in 2014.

In a disclosure to the stock exchange, Puregold said net sales increased by 12.5% to P 20.69 billion ($461.89 million) for the first quarter of 2015 due to strong consumer demand.

Income from operations also grew to P1.48 billion ($33.02 million) in the first quarter of 2015, up by 9.3% from P1.35 billion ($30.12 million).

Puregold same-store sales growth of 4.4% for the first quarter 2015 also surpassed expectations, said Puregold outgoing president Leonardo Dayao.

Growth prospects

Dayao said the company is excited about its growth prospects for 2015.

Toward end-March this year, Puregold opened Lawson – a Japanese convenience store with a maiden branch in Sta Ana, Manila. Lawson’s entry in the country heightens the competition among convenience stores, with 7-Eleven, Mini Stop, and Family Mart currently dominating the space.

Puregold earlier said that it plans to open 50 Lawson stores this year and 500 outlets across the country by 2020.

Continuing on its expansion binge, Puregold also acquired the 9 store NE Bodega supermarket; two S&R QSR stores; and 4 Puregold stores all outside Metro Manila.

As of end-March 2015, the company operated 233 Puregold stores; 9 S&R Membership stores; and 6 S&R New York Style Pizza stores.

For this year, Puregold is spending P5.5 billion ($122.86 million) in capital expenditures primarily to finance store expansion and fund possible acquisitions.

Dayao earlier said the company will spend P2.5 billion ($55.85 million) to put up 25 Puregold stores; P1.5 billion ($33.48 million) to build two S&R stores; while P1.5 billion ($33.48 million) will be set aside for acquisitions.

Apart from growing the Puregold format, the company is also accelerating the expansion of S&R stores by putting up two stores over the next 5 years.

One S&R store cost between P500 million ($11.16 million) to P700 million ($15.63 million). – Rappler.com

$1 = P44.80