Grocery chain operator Puregold Price Club Inc. sustained the earnings growth momentum seen since last year amid a prolonged coronavirus pandemic.
Puregold, led by the group of retail tycoon Lucio Co, booked around P1.97 billion in second quarter net profit, up by 20.8 percent year-on-year. Compared to the first quarter’s bottom line of P2.02 billion, however, earnings dipped by 2.5 percent.
For the first semester, net profit expanded by 17.3 percent year-on-year to P3.99 billion as belt-tightening measures made up for the decline in revenues.
Unlike most other companies, Puregold came from a high revenue base last year—exceeding prepandemic levels—as consumers stockpiled food and other essential items at the peak of government-mandated quarantine restrictions.
This year, however, six-month net sales declined by 7.1 percent year-on-year to P76.18 billion. Consolidated income from operations grew by 7.5 percent year-on-year to P6.14 billion in the first semester, which the company attributed to “strategic costs controls.”
The Puregold brand remained the group’s main cash cow, accounting for 72 percent of six-month revenues, while 28 percent was contributed by S&R Membership warehouse clubs and S&R New York Style Pizza stores.
“Puregold’s innovative digitization approach through our Puregold Mobile app, Puregold Channel and our e-commerce website will enable us to connect seamlessly with our consumers during this COVID-19 pandemic and at the same time strengthen customer loyalty,” Puregold president Vincent Co said in a disclosure to the Philippine Stock Exchange on Monday.
As of end-June, Puregold opened 15 new organic stores out of the planned 30 to 40 new Puregold stores to be opened this year.
S&R, which caters to a more upscale market and generates higher margins, also plans to open two new warehouse clubs in the second half of 2021.
Puregold ended the first semester with 484 stores nationwide. These include 418 Puregold stores, 20 S&R membership shopping warehouse and 46 S&R New York Style fast-food outlets.