Puregold’s 1st 9-month earnings up 14%

MANILA, Philippines - Puregold Price Club Inc., the listed grocery retailer of businessman Lucio Co, reported a consolidated net income of P3.65 billion in the nine months to September, up 14 percent from P3.2 billion a year ago.

Puregold president Vincent Co said strong consumer demand after the May presidential elections helped boost the nine-month performance.

“Our nine-month same store sales growth (SSSG) of 6.6 percent for Puregold stores and 1.4 percent for S&R stores were driven by strong consumer demand even after the elections. We hope this level of momentum in SSSG can be sustained for the remainder of the year,” he said.

In terms of net sales, Puregold said sales increased 16.9 percent to P78.74 billion during the period which came from strong consumer demand from its existing Puregold, S&R stores and S&R New York Style Pizza stores as well as the newly opened stores.

The company likewise grew its income from operations 15 percent to P5.26 billion, up from the P4.58 billion recorded in the same period last year.

As of end-September this year, the Puregold group has a total of 317 stores nationwide. These include 268 Puregold stores, 11 S&R membership shopping warehouse, and 21 S&R New York Style QSR, nine NE Bodega Supermarkets and eight Budgetlane Supermarkets.

It earlier targeted to open up to 25 new grocery stores this year.

At present, Puregold allocates roughly P40 million to as high as P150 million per grocery store with a size of 1,000 square meters, depending on whether the company would have to construct a building.

As such, the company is setting aside P1 billion to fund the Puregold store expansion.

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. In 2012, it opened 31 new Puregold stores, acquired the Parco supermarkets with 19 stores and S&R warehouse membership shopping club with six stores.