earnings reports

‘Cost controls’ push Puregold profits up 17.3% in January-June 2021

Ralf Rivas
‘Cost controls’ push Puregold profits up 17.3% in January-June 2021

GROCERY CHAIN. A Puregold store in Manila.

Puregold

Puregold president Vincent Co says their digital push will help them reach more customers amid the COVID-19 pandemic

“Strategic cost controls” pushed profits of Puregold Price Club to P3.99 billion in the first half of 2021, 17.3% higher than the P3.4 billion a year ago.

In a stock exchange filing on Monday, August 9, Puregold said its net sales dipped by 7.1% to P76.18 billion.

Of the total, 72% of the revenues came from the Puregold Stores network, while 28% were from S&R Membership warehouse clubs and S&R New York Style Pizza stores.

Puregold was among the most profitable companies during the first half of 2020, as people stocked up on food and other essential goods. Earnings in the first half of 2020 had jumped by 20%.

The dip in sales for the first half of 2021, however, was offset by the 7.5% growth in income from operations, which reached P6.14 billion in the first quarter of the year on the back of cost controls. Figures for the second quarter were not readily available.

“Puregold’s innovative digitization approach through our Puregold Mobile app, Puregold Channel, and our e-commerce website will enable us to connect seamlessly with our consumers during this COVID-19 pandemic and at the same time strengthens customer loyalty,” said Vincent Co, Puregold president.

As of end-June, Puregold has opened 15 new organic stores out of its planned 30 to 40 new Puregold stores. S&R also plans to open two new warehouse clubs in the second half of 2021.

The Puregold group currently has a total of 484 stores nationwide. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.