Puregold Price Club Inc., the grocery chain owned by billionaire Lucio Co, is acquiring Puremart stores for P567.5 million.
Puremart, which operates between 120 and 130 stores across Metro Manila, Rizal, Bulacan and South Luzon, is owned by Tower 6789 Corp. The Co family also controls Tower 6789.
The acquisition of Puremart includes leasehold improvements, furniture and fixtures, equipment and merchandise inventory from Tower 6789.
Puregold also acquired in 2022 the Co-family owned PSMT Philippines Inc, which is engaged in wholesale distribution of grocery items for P112.5 million.
Puregold said its board also approved not to extend its share buyback program for 2025.
The company in December 2023 renewed its P5-billion buyback program until end-2024 to boost shareholder value.
Puregold’s consolidated net income in the first nine months of 2024 grew 4.5 percent year-on-year to P6.9 billion from P6.6 billion.
Sales rose 9.1 percent to P151.97 billion in the nine-month period from P139.3 billion a year ago. Same-store sales rose 3.5 percent for Puregold stores and 4.1 percent for S&R Warehouse clubs, driven by higher traffic and basket size.
The company said it continues to see a buoyant trajectory in topline growth for the fourth quarter of 2024
The grocery chain opened 19 new Puregold stores, 3 S&R Membership Shopping Warehouse and 3 S&R New York Style QSR from January to September this year.
It said that as of end-September 2024, it had 591 stores nationwide. These included 505 Puregold stores, 29 S&R Membership Shopping Warehouses and 57 S&R New York Style QSRs.
