Puregold nets P2.27B

RETAILER Puregold Price Club grew six-month net profit by 13 percent year-on-year to P2.27 billion as the grocery chain operator boosted sales from its expanding store network.

For the second quarter, Puregold’s net profit rose by 16.6 percent year-on-year to P1.11 billion, the company reported to the Philippine Stock Exchange.

Net sales expanded by 18.3 percent year-on-year to P51.06 billion in the first six months. For the second quarter, net sales surged by 17.1 percent year-on-year to P26.35 billion.

Net margin eased to 4.4 percent in the first semester of 2016 compared to 4.7 percent in the same period last year but the grocery chain grew sales volume from both existing and new stores.

The higher profit chalked up in the first six months was thus attributed to the continuous expansion of the group, both organic as well as strategic acquisitions and investments.

Excluding the impact of new stores, net sales were still up by 7 percent for flagship Puregold and by 2.7 percent for S&R Membership Shopping.

Puregold also took note of “combined management strategies and programs to boost revenue contributions from both the base stores as well as new stores, complemented by operating efficiencies and strategic cost controls on operating expenses.”