MANILA, Philippines - Grocery chain Puregold Price Club Inc. nearly breached the P4-billion profit mark last year due to strong sales in both existing and new supermarket branches.
In a regulatory filing, the grocery unit of Lucio and Susan Co said reported Puregold’s net income surged 46 percent to P3.96 billion from P2.72 billion in 2012. Net profit margin also improved to 5.4 percent from 4.7 percent a yar ago.
Puregold said its consolidated net sales rose 27 percent to P73.18 billion from P57.47 billion year-on-year.
“The 27-percent growth in consolidated net sales was essentially due to the huge sales turnover of the 150 Puregold and six S&R stores operating as of the end of 2012,†the company said.
The grocery chain said it also benefited from the sales contribution of the 40 new Puregold and two S&R stores that opened in 2013, and the 15 Company E stores acquired in the first quarter.
The listed firm ended 2013 with 213 Puregold and S&R stores in operations.
Puregold is set to continue its rapid expansion program this year as it targets to put up a minimum of 25 new stores nationwide.
The country’s second largest grocery chain will spend around P3 billion to expand its footprint in the vibrant retail sector.
Puregold earlier counted close to 500 cities and first class municipalities nationwide that it can tap for new stores.
From just one store in 1998, Puregold has grown to be the closest competitor of grocery giant SM Retail Inc.