Puregold Net Income Up 16.8% to P1.76B in 1Q 2020

Puregold Price Club Inc. (PSE: PGOLD) has reported a consolidated net income of PhP1.76 billion in the first quarter of 2020 which represents a 16.8 percent growth compared to PhP1.51 billion in the same period in 2019. Consolidated Net margin for the period is at 4.3 percent.

Puregold stores registered stronger than expected same store sales growth (SSSG) of 14.4 percent in the first quarter of 2020 while S&R registered a SSSG of 5.1 percent during the same period. Our SSSG in this period is driven by higher consumer spending and pantry loading prior to the Covid Quarantine as well as the low inflation environment in 2020.

Puregold consolidated net sales increased by 17.4 percent to PhP40.95 billion in the first quarter of 2020. About 77 percent of the revenues is attributed from the Puregold Stores network and 23 percent coming from S&R Membership warehouse clubs and S&R New York Style Pizza stores. Income from Operations grew to PhP2.97 billion in the first quarter of 2020, up by 15.4 percent compared to PhP2.57 billion during the same period last year.

As of end March 2020, Puregold group has a total of 443 stores nationwide. These include 384 Puregold stores, 20 S&R membership shopping warehouse, and 39 S&R New York Style QSR with a total net selling area of around 580,000 sqm.