Puregold targets P75-B sales

MANILA, Philippines - Grocery chain Puregold Price Club Inc. expects another robust performance this year as it embarks on more store acquisitions and organic expansion.

Puregold targets roughly P75 billion in consolidated net sales as it intends to spend P3 billion this year to support its growth, the company said in a disclosure to the stock exchange.

“Consolidated net sales are targeted to grow 30 percent from P57.5 billion in 2012,” Puregold said.

Specifically, better contributions are expected from the full-year operations of 31 new Puregold stores, consolidation of S&R warehouse membership shopping clubs, and rebranding of Parco Supermarkets.

“Capital expenditures for 2013 is estimated at about P3 billion for 25 new Puregold stores... to be funded by the proceeds of the corporate notes issue,” Puregold said, adding that it plans to open one S&R branch in Davao City this year. The company spent roughly P3 billion for its expansion projects last year.

In October, Puregold raised P5 billion from the issuance of five- and seven-year corporate notes.

The expansion program is aimed at sustaining the current consolidated gross and net profit margins, the company said.

Profits of the grocery chain surged 75.9 percent to P2.718 billion last year as consolidated net sales jumped 47.4 percent to P57.467 billion.

Puregold said it is also continuing its acquisition program to further expand its geographic reach.

Last month, Puregold spent P329.99 million to beef up its portfolio by acquiring Mega Manila-based chains Eunilaine and Grocer E. Company E owned four operating Eunilaine foodmarts and 11 operating Grocer E supermarts.

Puregold earlier said it wants to capitalize on the growing consumer needs of the community and residential markets. The acquisition increased the grocery chain’s customer base, particularly in the C and D markets in the areas of operation of the Enciso family’s Company E.

Puregold, ended last year with 156 stores in operations, composed of 131 Puregold Hypermarkets, Supermarkets and Extras; 19 Parco Supermarkets; and six S&R warehouse membership shopping clubs. As of end-2012, Puregold had 77 stores in Metro Manila, 45 in Southern Luzon, 33 in Northern Luzon and one in the Visayas.

This year, Puregold is branching out in Mindanao with the opening of its flagship store in Cagayan de Oro and an S&R Membership Club in Davao as part of plans to hit its 200-outlet target ahead of the 2015 schedule.