Puregold Q3 net down 4%

Grocery chain operator Puregold Price Club saw a 4-percent year-on-year decline in third quarter net profit to P1.65 billion as rental income slipped due to considerations given to tenants affected by the COVID-19 pandemic.

But for the nine-month period, Puregold’s net profit rose by 10.9 percent year-on-year to P5.05 billion as consolidated net sales increased by 10.1 percent year-on-year to P121.14 billion, driven by sustained growth in sales from old and new stores.

“We are confident that our company will achieve another record year in terms of net profit in 2020 despite the challenges brought about by COVID-19,” Puregold chair Lucio Co said in a statement on Thursday.

Compared to the net profit of P1.63 billion in the second quarter, when most parts of the country were under enhanced community quarantine, Puregold’s bottomline inched up by 1.22 percent.

Third quarter net sales also rose by 1.1 percent year-on-year to P39.17 billion. However, other operating income declined by 15.9 percent year-on-year to P686 million during this period. Based on the regulatory filing, this was attributable to the decline in rent income amid the pandemic.

For the nine-month period, other operating income was flat year-on-year at about P2.3 billion as the decline in rental income was partially offset by the increase in concession income as well as S&R membership income, driven by new stores opened during the period and the full operation of stores opened in 2019.

Consolidated net margin for the nine-month period was at 4.2 percent versus 4.1 percent in the same period last year. For whole year, Puregold expects to sustain a consolidated net margin of 4-5 percent.

Counting only sales from stores that were existing during nine-month period last year, sales grew by 4.5 percent for Puregold while same store sales expanded by 6.4 percent for S&R.

As of end-September, the Puregold group had a total of 455 stores nationwide. These included 393 Puregold stores, 20 S&R membership shopping warehouse and 42 S&R New York Style fast-food restaurants.

Of the P121.14 billion revenues generated by Puregold in the first nine months, 75 percent was attributed to the Puregold Stores network and 25 percent was from S&R Membership warehouse clubs and S&R New York Style Pizza stores. Total income from operations grew by 11.8 percent year-on-year to P8.5 billion in the first nine months. —DORIS DUMLAO-ABADILLA