Puregold posts record profit in 2014

MANILA, Philippines - Core profit of Lucio Co’s grocery unit reached a record high last year, growing nearly a fifth as consumers continued to flock to the over 200 Puregold stores nationwide.

Puregold Price Club, Inc. told the local bourse yesterday that its core net income soared 18 percent last year to P4.52 billion from P3.83 billion in 2013, which then excluded interest income of P134 million from corporate bonds.

The country’s second largest grocery chain said net sales rose 16 percent year-on-year to P84.7 billion in 2014 due to the strong consumer demand.

Puregold ended last year with 233 Puregold stores, nine S&R Membership stores and six S&R New York Style Pizza stores.

Puregold said the company’s record-high core profit last year beat market expectations.

This year, Puregold president Leonardo B. Dayao said the listed supermarket operator is again seeking to break records on expectations of substained strong consumer spending.

“I believe that 2015 will be another record year of profits for Puregold as we continue with our expansion strategies of opening 25 Puregold stores per year and two S&R stores per year for the next five years excluding acquisitions as well as the continued increasing consumption from our customers.” Dayao said.

Puregold has scaled up its capital expenditure budget this year to P5.5 billion from the P3 billion spending programmed last year.