Puregold profit grows 11% in 2015

MANILA, Philippines - Puregold Price Club Inc. said its net income hit P5 billion in 2015, up 10.6 percent year on year amid strong consumer demand.

Consolidated net sales grew 14.7 percent to P97.17 billion mainly coming from its Puregold, S&R and S&R New York Style Pizza stores as well as the newly opened stores.

Income from operations increased 10.4 percent  to P7.15 billion in 2015.

Puregold president Vincent Co said demand has been strong with same store sales growth at 3.8 percent, the highest growth in the last four years.

“We look forward to sustain or achieve higher same store sales growth in 2016 given that the same stores sales growth in the first two months of 2016 has been in the seven to eight percent,” Co said.

The robust growth was also driven by the 255 Puregold and 10 S&R stores which increased scale of operations.

As of the end  of 2015, Puregold group had a total of 298 stores nationwide which include 17 stores of NE Bodega and Budgetlane Supermarket that was acquired during the year. These stores are located in North Luzon, South Luzon, Metro Manila, Visayas and Mindanao.

Puregold is allocating P2.6 billion for capital expenditures this year, of which P1 billion each would go to the construction of 25 new Puregold stores and two S&R stores.

About P450 million will be used to fund the development of 75 Lawson stores.

Funding will come from internally generated cash and short-term untapped bank credit lines if necessary, Puregold said.

The company has gone a long way since opening its first store in Mandaluyong in 1998. Between 2002 and 2006, it launched an average of three new stores every year and expanded operation in North and South Luzon.