PUREGOLD Price Club Inc., the grocery chain operator led by businessman Lucio Co, revealed last Tuesday that its net income last year grew 13 percent to P9.3 billion from the previous year’s P8.18 billion, mainly on higher sales from its growing chain.
Puregold said its consolidated net sales for 2022 was higher by 12 percent to P184.3 billion from the previous year’s P167.33 billion, driven by 6.6 percent full year same store sales growth.
“(The company) has sustained a growth path throughout the pandemic by being a reliable partner to its suppliers and leveraging its reach and scale to bring value to its community of carded members,” it said.
The company said its sari-sari store customer base also gained further strength as one of the preferred retail channels that saw robust demand amidst record fuel prices, commodity shortages and higher transportation costs
In the second half of the year, early holiday spending and greater normalization of in-person activities unhindered by health protocols provided impetus, dispelling survey results showing declining consumer expectations.
For the fourth quarter alone, Puregold saw its revenues grew 16 percent year-on-year on the back of 11.7 percent consolidated same store sales growth.
“The company still sees continuous growth in its top line in the coming years due to country’s healthy underlying fundamentals, underserved demand and relatively raw retail landscape,” it said.
For this year, the company said it is committed to keeping high inventory levels and increased its business activities due to expansion in more provincial areas. Gross profit margins remained buoyant due to sales mix and collaborative business partnerships with suppliers as the group pushes to offer competitive prices to ease inflationary pressures for all customers, it said.
The company said it saw an increase in operating expenses, primarily attributable to higher employee costs, utilities expense and lease related charges partially offset by execution of productivity initiatives.
The group opened 24 new “Puregold” stores and six “S&R” quick-service restaurants (QSRs).
As of end-2022, Puregold has a total of 525 stores nationwide. These include 452 “Puregold” stores, 22 “S&R” membership shopping warehouses and 51 “S&R New York Style” QSRs.