Puregold Q1 profit surged 24% to P3.26B
Puregold Price Club, Inc. saw a sharp increase in first-quarter earnings as strong sales growth and improving margins boosted profitability across its supermarket and membership warehouse formats.
The tycoon Lucio Co-led retailer said on Thursday consolidated net income jumped 23.7 percent year-on-year to P3.26 billion in the January-to-March period from P2.64 billion previously.
Consolidated revenue rose 12.1 percent to P58.78 billion, thanks to higher spending and stronger customer traffic.
Puregold stores posted a same-store sales growth (SSSG) of 5.4 percent, mainly on account of a higher basket size.
S&R Warehouse Clubs recorded a 12-percent SSSG due to stronger foot traffic.
The grocery chain’s gross profit climbed 15.1 percent to P11.8 billion. This lifted gross margin to 20.1 percent from 19.6 percent a year earlier.
Gross operating income likewise increased 14.5 percent to P12.78 billion, while operating income surged 20 percent to P4.77 billion.
Operating expenses rose 11.4 percent to P8 billion during the quarter as the retailer continued expanding operations.
Other operating income also increased by 7.8 percent to P977 million.
As of end-March, Puregold operated a total of 790 stores nationwide, consisting of 685 Puregold stores, 33 S&R membership shopping warehouses and 72 S&R New York Style quick-service restaurants.
The company said stronger top-line growth and improved gross margins drove the increase in net income during the quarter.
