Supermarket operator Puregold Price Club Inc. reported a consolidated net income of P6.52 billion in 2018, up 11.6 percent from P5.8 billion in 2017, on double-digit growth in revenues.
Puregold said in a disclosure to the stock exchange consolidated net sales increased 13.2 percent to P140.9 billion in 2018.
Puregold stores, which accounted for 78 percent of total revenues, posted stronger-than-expected same store sales growth of 5.8 percent in 2018 while S&R Membership Club stores registered an 8.4-percent increase in the same period.
“We were able to sustain our SSSG in the last quarter of 2018 driven by higher consumer spending fueled both by minimum wage inflation and higher take-home pay as a result of the tax reform law passed early 2018,” Puregold said.
Income from operations rose 3.3 percent to P8.94 billion in 2018 from P8.65 billion in the previous year..
The Puregold group had 408 stores nationwide as of end 2018. These include 354 Puregold stores, 16 S&R membership shopping warehouses and 39 S&R New York Style QSR.
Puregold plans to open a 25 new Puregold stores and four new S&R warehouses as part of a network expansion.
Online brokerage Philstocks Inc. said Puregold sustained its sound fundamentals in 2018 despite the high inflation rate.
“Moving forward, good prospects are seen for the retail giant backed by its target expansion which is expected to generate more revenues coupled with easing inflation,” Philstocks said.
Puregold earlier said it would increase its capital stock to P5 billion from P3 billion in preparation for possible investment opportunities in the future.
Puregold said after the recent top-up placement of the company, only around 100 million shares were left in the unissued portion of the capital stock.
The supermarket operator said the higher capital stock would prepare the company in case of an opportunity to raise fund in the future.