MANILA, Philippines — Puregold Price Club Inc. reported a 185 percent jump in net income to P1.08 billion in the first nine months of 2011 from P379 million in the end of the same period last year as revenues surge due to its rapid store expansion.

In a disclosure to the Philippine Stock Exchange, Puregold said total net sales rose 36 percent to P26.95 billion from P19.77 billion in the same period of 2010.

This was largely due to increase in turnover as a result of opening of new stores in 2011 and in the last quarter of 2010. As of September 30, 2011, 4 hypermarkets, 4 supermarkets and 9 discounters, or a total of 15 stores were opened.

Furthermore, 12 stores were opened in the last quarter of 2010 out of the 22 store expansion during the year. These new stores account for 24 percent of total net sales for the nine months of operation during the year.

Total cost of sales for the period amounted to P23 billion, an increase of 34 percent compared to P17.3 billion in the same period of 2010. This was largely due to the opening of new stores, which was partially offset by increase in conditional discounts from the Company’s suppliers.

Other operating income increased by P184 million or 34 percent due mainly to the opening of new stores and increase in commissions due from renting of product locations in store aisles to suppliers and renting of booths to third party retailers, as well as increase in display allowances from the stores.

Selling expenses increased by P631 million or 33 percent as a result of an increase in the cost of manpower to staff the Company’s new stores, increase in minimum wage and as result of the consolidation of Puregold Junior’s employees and assets with the Company.