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Friday, March 29, 2024

Puregold’s income rose 18% to P4.6b in 9 months

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Puregold Price Club Inc., the second largest supermarket chain owned by businessman Lucio Co., said net income in the first nine months of the year climbed 18 percent to P4.62 billion from P3.9 billion year-on-year on aggressive store expansions and stronger-than-expected same-store-sales growth.

Puregold said in a disclosure to the stock exchange consolidated net sales increased 14 percent to P99.8 billion in the nine-month period, with 78 percent of the revenues coming from the Puregold store network and 22 percent from S&R Membership warehouse clubs and S&R New York Style Pizza outlets.

Revenues from Puregold’s same stores rose 5.8 percent while S&R registered a same store sales growth of of 8.8 percent in the same period. 

“We are optimistic that we will be able to sustain our SSSG in the last quarter of 2018 to be driven by higher consumer spending fueled by higher levels of take-home pay as a result of the tax reform law,” Puregold said.

Puregold raised its consolidated net sales guidance to 12 percent to 14 percent for the full year of 2018 from the initial 7 percent to 9 percent.

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Same store sales growth guidance for Puregold and S&R for 2018 has also been increased to 4 percent to 6 percent from the initial 2 percent to 4 percent early this year. 

The Puregold group had a total of 397 stores nationwide as of end September 2018. These include 345 Puregold outlets, 16 S&R membership shopping warehouse, and 36 S&R New York Style stores.

The supermarket chain said it was on track to add 25 new Puregold stores and two new S&R warehouse outlets in 2018.

Meanwhile, Puregold’s parent Cosco Capital Inc. reported a consolidated net income growth of 16.8 percent to P 6.27 billion in the first nine months of 2018, driven by the continued economic growth and higher consumer spending as a result of the tax reform law.

Puregold’s grocery retailing businesses contributed 59 percent to the total profit, followed by the commercial real estate segment with 22 percent and the liquor distribution with 13 percent. 

The group’s specialty retailing segment, composed of Liquigaz Philippines Corp. and Office Warehouse, Inc., accounted for 10 percent of the profit.

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