Puregold’s first half net profit up 21% to P2 billion

RETAILER Puregold Price Club Inc. reported a 21.1 percent year-on-year growth in first semester net profit to P2 billion on improved margin alongside higher sales from its expanding store network.

Parent conglomerate Cosco Capital Inc, the retail holding firm of businessman Lucio Co, also reported a 24 percent growth in net income to P1.86 billion for the first half.

For Puregold, net margins for the first six months averaged at 4.7 percent compared to 4.3 percent in the same period last year, Puregold said in a press statement on Thursday.

“We are excited about the growth prospects for Puregold in 2015,” said Puregold president Vincent Co.

Even taking out the impact of new stores opened by the group, Co added that the same store sales growth of 3.6 percent in the first semester was “better than our expectations.”

Puregold expanded net sales by 11.9 percent year-on-year to P43.14 billion in the first semester, citing strong consumer demand from its existing 233 Puregold stores, nine S&R membership stores and six S&R New York Style Pizza stores as well as new stores opened during the year.

In the first semester, the group opened 10 new Puregold stores, four S&R quick service restaurant (QSR) stores, four convenience stores under the “Lawson” brand and also acquired the nine-store NE Bodega Supermarket.

Group-wide operating income went up by 20.9 percent year-on-year to P2.86 billion.

Puregold ended June with 258 stores nationwide, including nine S&R stores and 10 S&R New York-style QSR.

For Cosco, consolidated revenues in the first semester amounted to P52.74 billion, up by 30 percent year-on-year. The retail business segment from Puregold and S&R contributed 82 percent of the total revenues. Specialty retail business from Liquigaz, the second largest LPG player in the Philippines and Office Warehouse accounted for 13 percent while the rest was contributed by the liquor distribution and real estate leasing business units.

“All our operating business units are performing well and we believe that this trend will continue for the year 2015. We are constantly working on more expansions and acquisitions across all businesses to cater to the growing demands of consumers,” said Cosco president Leonardo Dayao.

Cosco’s net income from real estate leasing rose by 21 percent while profit from liquor distribution grew by 15 percent year-on-year.