Puregold downgrades 2014 revenue target

MANILA, Philippines – Puregold Price Club Inc (PPCI) has lowered its full-year revenue growth target to 17% from 20% amid increasing competition, a company presentation during the analysts’ briefing showed.

Puregold is one the leading supermarket chains in the country and also a favorite retail stock among investors. It has been facing stiff competition from other retail companies.

With the revised growth target, Puregold will likely hit P85.64 billion ($1.91 billion*) sales in 2014 from  P73.2 billion ($1.63 billion) in 2013.

From January to September this year, Puregold recorded a 16.1% growth in net sales to P59.8 billion ($1.33 billion) versus P51.49 billion ($1.15 billion) in the same period in 2013.

The net selling area also grew by about 5% as of end-September, attributed to organic expansion.

Puregold, one of the companies of businessman Lucio Co, said it aims to sustain the company’s current gross and net profit margins.

The company posted a 5%-net profit margin from January to September 2014, from 4.3% in the first half of the year.

Despite lowering its net sales target for 2014, the company said it is on track to meet its target 26 store openings.

On November 5, PPCI president Leonardo Dayao said Puregold branches will open in Rosario, Pasig; España, Manila; Karuhatan, Valenzuela; Trece Martirez, Cavite; and Angeles, Pampanga

As of end-September, the company opened 22 stores, bringing to 233 its total number of Puregold stores with consolidated net selling area of nearly 390,000 square meters.

Puregold will also pursue acquisition to further expand in the country. Rappler.com 

 *$1 = P44.90