By Madelaine B. Miraflor
As supermarket chain Puregold Price Club, Inc. grew its income to almost P7 billion in 2018 on the back of strong sales growth, it now plans to continue its annual store expansion this year.
A disclosure to the Philippine Stock Exchange showed that Puregold has reported a consolidated net income of P6.52 billion in 2018, an increase of 11.6 percent from the P5.8 billion recorded in the same period in 2017.
This, as Puregold stores registered stronger than expected same store sales growth (SSSG) of 5.8 percent in 2018, while S&R registered a SSSG of 8.4 percent during the same period.
As of end 2018, Puregold group has a total of 408 stores nationwide. These include 354 Puregold stores, 16 S&R membership shopping warehouse, and 39 S&R New York Style QSR.
For this year, the company said it will open another 25 new Puregold stores and four new S&R warehouse.
“We were able to sustain our SSSG in the last quarter of 2018 driven by higher consumer spending fueled both by minimum wage inflation and higher take-home pay as a result of the tax reform law passed early 2018,” Puregold told the exchange.
During the period, Puregold consolidated net sales increased by 13.2 percent to P140.9 billion, with 78 percent of the revenues attributed from the Puregold Stores network and 22 percent coming from S&R Membership warehouse clubs and S&R New York Style Pizza stores.
The firm’s income from operations also grew to P8.94 billion in 2018, up by 3.3 percent compared to P8.65 billion during the same period last year.