Puregold sales growth lifts H1 profit to P5.87B

MANILA, Philippines — Grocery retailer Puregold Price Club Inc. grew first-half net income 10.8 percent as stronger sales at its Puregold and S&R businesses boosted earnings.

The Lucio Co-led firm said Thursday that consolidated net income reached P5.87 billion in the first six months, up from P5.30 billion a year earlier. Net margin held at 4.8 percent.

READ: Puregold Q1 profit surged 24% to P3.26B

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“The strong earnings performance was driven by robust topline growth, further supported by an improvement in gross margins amid sustained supplier support,” the company said.

Consolidated net sales rose 10.6 percent to P121.48 billion, with both formats posting positive same-store sales growth. Puregold stores grew 3.7 percent on bigger basket sizes, while S&R Warehouse Clubs rose 12.8 percent on higher customer traffic.

Gross profit climbed 12.9 percent to P23.66 billion, lifting gross margin to 19.5 percent from 19.1 percent. Gross operating income, including other operating income, rose 12.4 percent to P25.63 billion, with the margin improving to 21.1 percent from 20.8 percent.

READ: Puregold aims to grow faster than local economy

Higher costs tempered the gains, with operating expenses rising 11.7 percent to P16.74 billion and other expenses, net of other income, increasing to P1.24 billion from P966 million.

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Still, operating income grew 13.6 percent to P8.89 billion, while pretax income rose 11.5 percent to P7.65 billion.

Puregold also continued expanding its nationwide footprint, ending June with 794 stores: 688 Puregold stores, 33 S&R Membership Shopping Warehouses and 73 S&R New York Style quick-service restaurants. /pai