Puregold's 9-month earnings up 13.6% despite sales drop

MANILA, Philippines — Listed grocery operator Puregold Price Club Inc. posted double-digit earnings growth in the first nine months, as “costs controls” helped cushion the impact of sagging sales.

In disclosure to the stock exchange on Wednesday, Puregold reported a consolidated net income of P5.73 billion in the January-September period, up 13.6% compared with a year ago. The company only issued a statement and is yet to release its full financial results.

Puregold benefitted from the initial rush of buyers hoarding essential items at the height of last year’s coronavirus lockdowns. But in the first three quarters, consolidated net sales fell 4.9% year-on-year to P115.24 billion as looser mobility curbs ease panic-buying.

Broken down, 72% of total revenues during the period came from the company’s Puregold stores while the remaining 28% was sourced from S&R Membership warehouse clubs and S&R New York Style Pizza stores.

But despite the sales slump, nine-month consolidated income from operations grew 6.7% on-year to P9.06 billion due to “improved gross margins and strategic costs controls” that the company did not elaborate.

Moving forward, Puregold is banking on its new stores to drive growth. As of end-September, the company opened 19 new organic stores out of planned 30 new Puregold stores.

“We continue to be optimistic that the Philippine economic recovery will improve going into the last quarter of 2021 as Covid-19 cases continue to decline, quarantine restrictions are relaxed, and mobility of Filipinos increases as more people get vaccinated,” Vincent Co, company president, said.

Shares in Puregold finished midweek trading flat at P42.8 apiece.