The Securities and Exchange Commission approved the merger of Puregold Price Club Inc. with three grocery companies it recently acquired.
Puregold said in a disclosure to the stock exchange Monday the SEC cleared the merger with Daily Commodities Inc., First Lane Super Traders Co. Inc. and Goldtempo Company Inc. Puregold is the surviving entity.
The three grocery firms own 17 stores, mostly located in Cabanatuan City and the provinces of Rizal, Bulacan and Aurora.
Puregold said it would soon rebrand and convert the 17 stores into Puregold outlets.
“The company intends to consolidate all stores catering to the same market group into one company. The company expects better inventory management, efficient cash management and simplified reporting to government agencies as a result of this merger,” Puregold said.
Puregold reported a net income of P3.9 billion in the first three quarters of 2017, up seven percent from P3.64 billion recorded year-on-year.
Puregold’s consolidated net sales increased 11 percent to P87.6 billion in the first nine months of 2017 due to the strong consumer demand from its existing Puregold, S&R Membership warehouse clubs and S&R New York Style Pizza stores.
The company reported a better-than-expected same store sales growth of 4.5 percent for Puregold stores and 10.7 percent for S&R stores in the first nine months of 2017, driven by the strong consumer demand and the sustained economic growth of the Philippines,
Puregold group as of end September 2017 had a total of 352 stores nationwide. These include 291 Puregold stores, 13 S&R membership shopping warehouse and 31 S&R New York Style QSR, 9 NE Bodega Supermarkets and 8 Budgetlane Supermarkets.
It recently acquired five B&W stores in Roxas City, Capiz.
Puregold has planned to open 25 stores and 2 new S&R warehouse this year. The group’s S&R is currently developing two new S&R warehouse for opening.
Share price of Puregold on Monday rose 2.4 percent to P49.20.