Puregold nets P1.77B in H1

MANILA, Philippines - Continuous store expansion and acquisitions softened the impact of slowing same-store sales of grocery chain Puregold Price Club Inc. as it posted a 71.5-percent surge in net income to P1.77 billion in the first half from P1.03 billion a year ago.

In a disclosure, Puregold said net sales jumped nearly 42 percent to P33.01 billion from P23.27 billion last year while cost of sales grew at a slower pace of 39 percent to P27.23 billion.

“This was the result of the continuous strategic expansion of the group including major acquisitions in the previous year and in the first quarter,” Puregold said.

The expansion program allowed Puregold to post a robust profit growth despite same-store net sales growth slowing to 4.3 percent in the first half compared with a 7.1-percent increase last year.

In the first half, the company opened 21 new Puregold and S&R stores. It also acquired Company E Corp.’s 15 branches.

As of end-June, Puregold has 192 stores with a net selling area of more than 330,000 square meters.

Puregold targets to grow its consolidated net sales by 30 percent to roughly P75 billion this year from P57.5 billion in 2012.

It allotted P3.5 billion to open 35 new Puregold stores and one S&R store this year. The company also “aims to pursue acquisitions as a template to further geographic expansions.”

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.