MANILA, Philippines - Puregold Price Club Inc., the country’s second largest grocery retailer, is setting aside P2.6 billion in capital expenditures next year to continue beefing up its retail network across the country.
Puregold vice president for investor relations John Marson Hao said the allocated budget for 2016 still excludes potential spending for acquisitions.
This year, Hao said the company has earmarked a capital spending of P3.4 billion which included P1.5 billion for the acquisition of NE Bodega and Budgetlane Supermarket outlets.
He said the company continues to scout for new grocery chains to acquire but no immediate targets at the moment.
Getting the lion’s share of Lucio Co’s listed grocery chain budget next year is Puregold and S&R stores with a P1 billion allotment each.
Hao said the amount would entail opening 25 Puregold stores, most of which will be situated in North Luzon, and two S&R stores.
Hao said about P450 million would be used to put up 75 Lawson outlets and another P150 million for 10 new S&R quick-service restaurants.
By yearend, the listed company targets to have 257 Puregold outlets, nine NE Bodega stores, eight Budgetlane supermarkets, 10 Lawson stores and 15 S&R stores.
With its expansion for 2015 nearly completed, Puregold expects to post a double digit growth in both net income and revenues by the end of the year.