Puregold profit hits P2.3B in H1

Benefiting from the sales of its expanded store network, retailer Puregold Price Club grew its six-month net profit by 13 percent year-on-year to P2.27 billion.

For the second quarter, the grocery chain operator’s net profit rose by 16.6 percent year-on-year to P1.11 billion, a disclosure to the Philippine Stock Exchange showed.

Net sales expanded by 18.3 percent year-on-year to P51.06 billion for the six-month period.  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 its 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, which was organic and through strategic acquisitions and investments.  The company reported strong consumer demand from its existing and new Puregold branches, S&R stores and S&R New York Style Pizza stores.

Excluding new store contributions, same store sales expanded for both flagship brand Puregold and S&R Membership Shopping.

“Our first half same store sales growth (SSSG) of 7 percent for Puregold stores and 2.7 percent for S&R stores was driven by strong consumer demand. We are also upgrading our guidance for Puregold stores SSSG to between 4.5 and 5 percent for 2016,” Puregold president Vincent Co said in a press statement.

In its report, Puregold also noted a “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.”

Income from operations grew by 14.3 percent year-on-year in the first semester to P3.27 billion.