Grocery chain operator Puregold Price Club Inc. said Wednesday nine-month net income rose 4.1 percent to P5.05 billion from P4.55 billion in the same period last year on the back of a double-digit growth in sales.
Puregold said in a financial report filed with the Philippine Stock Exchange net sales climbed 10.1 percent in the first nine months to P121 billion from P110 billion a year ago.
The supermarket operator said the strong results in the first three quarters were driven by organic expansion, coupled with sustained consumer demand.
Puregold said the management strategies and programs to boost revenue contributions from both the base and new stores helped increase overall sales.
“The full operation of new organic stores put up in 2019 boosted the increase in consolidated net sales in addition to robust store sales growth and revenue contributions from new organic stores established during the nine months of 2020,” Puregold said.
Same-store sales increased 4.5 percent in the first nine months, while S&R outlets registered growth of 6.4 percent.
The company said net income in the third quarter declined 4 percent to P1.65 billion from P1.72 billion even as sales inched up 1.1 percent to P39.2 billion from P38.75 billion.
Puregold raised P12 billion from the issuance of fixed-rate corporate notes in September, with proceeds going to fund store expansion.
Puregold operates 444 stores nationwide among Puregold, S&R Membership Shopping and quick service restaurant formats.
It allocated P3.4 billion in capital expenditures this year to build 25 new Puregold stores, two S&R stores and QSR restaurants.
Puregold said that despite the pandemic, expansion plans remained in place as the health crisis further emphasized the need to go into locations where the company has no presence to provide basic goods and essential products to those markets.
The share price of Puregold fell 0.47 percent on Wednesday to close at P42.20.