Puregold’s profit climbed 16.8% to P1.76b in Q1

Supermarket chain operator Puregold Price Club Inc. said Friday consolidated net income increased by 16.8 percent in the first quarter to P1.76 billion from P1.51 billion in the same period last year as the coronavirus pandemic boosted demand for essential goods.

Puregold said in a disclosure to the stock exchange consolidated net sales went up 17.4 percent in the first quarter to P40.95 billion

Puregold stores registered stronger-than-expected same-store sales growth of 14.4 percent in the first quarter while S&R registered a SSSG of 5.1 percent during the same period.

“Our SSSG in this period is driven by higher consumer spending and pantry loading prior to the COVID-19 quarantine as well as the low inflation environment in 2020,” Puregold said.

It said 77 percent of the total revenues came from Puregold stores and 23 percent from S&R Membership warehouse clubs and S&R New York Style Pizza stores.

Income from operations grew 15.4 percent in the first quarter to P2.97 billion from P2.57 billion a year ago.

Puregold group had 443 stores nationwide as of end-March.  These included 384 Puregold stores, 20 S&R membership shopping warehouse outlets and 39 S&R New York Style QSR with a total net selling area of 580,000 square meters.

The company earlier announced plans to continue with expansion by opening 25 new Puregold stores this year. It also opened two S&R membership shopping warehouse stores since the start of the year.

Puregold said to adapt to the changing consumer behavior amid the COVID-19 pandemic, it was planning to offer online grocery shopping in 100 Puregold stores by end-2020.

It said only 40 of 380 Puregold stores were offering online grocery shopping under Puregold Mobile App so far.

The share price of Puregold dropped 0.76 percent to settle at P46 on Friday.