Puregold goes for 25% profit growth in ’12
Retailer Puregold Price Club Inc. aims to grow its net profit by at least 25 percent this year as 38 additional stores contribute to full-year earnings.
In a telephone interview on Saturday, Puregold president Leonardo Dayao said the company hoped the increase in net income this year would at least match the 25 percent growth guidance for net sales.
As the flagship retailing arm of Filipino-Chinese businessman Lucio Co reported a net income of P1.54 billion in 2011, a 25-percent net profit growth means a potential bottom line of P1.92 billion this year.
Puregold opened a total of 38 stores last year to end 2011 with 100 stores. Total net sales grew by 33.9 percent.
This year, net sales are expected to grow by 25 percent from P39 billion in 2011. At least P3 billion, meanwhile, has been earmarked for capital expenses. The plan is to open 25 new stores.
With its plan to acquire the S&R membership shopping business, Puregold also hopes to address the upscale retail market.
S&R was set up in 2000 in partnership with Price Smart of the US and acquired by the Co family in 2006. Operated by Kareila Management Corp., S&R has branches in Bonifacio Global City; Congressional Ave. in Quezon City; Alabang, Muntinlupa; Aseana Business Park in Baclaran; San Fernando in Pampanga; and Mandaue City in Cebu.
Of its store network in 2011, 61 were hypermarkets (Puregold Price Club), which cater to both the reseller and retail markets; 28 were supermarkets (Puregold Jr.); and 11 were discounters (Puregold Extra).—Doris C. Dumlao
