Puregold net up by 76%

Retailer Puregold Price Club grew its net profit last year by 75.9 percent to P2.72 billion, outperforming its guidance earnings for the year, as sales posted double-digit growth.

Based on the company’s earnings guidance for 2012, Puregold was expected to post a net profit of about P2.63 billion, 71 percent higher from year-ago level.

In a disclosure to the Philippine Stock Exchange, Puregold said consolidated net sales for last year increased by 47.4 percent year-on-year to P57.467 billion.  This was attributed by the company to the 27.1-percent rise in the sales turnover of the 131 Puregold stores operating as of the end of the year.

The six S&R warehouse clubs and 19 Parco supermarkets, which were acquired by the company in June last year, contributed 13.9 percent of the consolidated net sales.

For 2012, Puregold posted a gross profit margin of 16.1 percent, up from 14.2 percent a year ago.

In terms of net profit margin, Puregold logged a 4.7 percent net profit margin last year, up from 4 percent a year ago.

Puregold ended last year with a nationwide network of 156 stores, outpacing its medium-term target as the acquisition of S&R and Parco complemented organic expansion.

When this retail company, led by Filipino-Chinese businessman Lucio Co, went public in 2011, it made a commitment to double its branch network to 200 by 2015.  But with its takeover of Parco and S&R, the medium-term target is now being reassessed as the original target could be hit by next year, officials said.

This year, the group has at least 25 new store openings in the pipeline for the Puregold brand.  It is also breaking into the Mindanao market with the opening of an S&R store in Davao in April or May this year.   The group’s store network is expected to hit 182 by the end of this year, while capital spending may hit P3 billion.