5 hours ago
2
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
Puregold President Ferdinand Vincent CoTycoon Lucio Co’s grocery retailer Puregold Price Club, Inc. (PGOLD) is the third listed major consumer company after Robinsons Retail Holdings Inc. and Wilcon Depot to report an uptick in consumer traffic and their growing basket sizes.
Puregold posted a 6.5 percent improvement in consolidated net income to ₱2.64 billion in the first quarter of 2025 from the ₱2.48 billion it earned in the same period last year due to strong topline growth and stable gross margins.
In a disclosure to the Philippine Stock Exchange, the firm said it grew consolidated revenues by 10.8 percent to ₱52.42 billion for the first quarter of 2025, from ₱47.32 billion same period last year.
For the first quarter 2025, the enterprise experienced positive same store sales growth (SSSG) of 5.9 percent from Puregold Stores driven by higher basket size and four percent from S&R Warehouse clubs driven by higher traffic.
As of end March 2025, PGOLD operates a total of 757 stores nationwide comprising 662 Puregold stores, 30 S&R Membership Shopping Warehouses, and 65 S&R New York Style QSRs.
Puregold said last month that it is reducing its capital expenditures to ₱6.35 billion this year from the ₱8.1 billion it alloted in 2024 although it expects to grow consolidated revenues by six percent to eight percent in 2025.
For this year, Puregold is alloting ₱1.9 bilion for 30 new Puregold stores as well as ₱3 billion for three S&R Membership warehouse stores and 14 S&R quick service restaurants.
The firm is also earmarking ₱200 million for logistics capex and ₱1.25 billion for maintenance capex, solar projects, and information technology up grades.
For the next two years, Puregold aims to grow its business by an eight percent to 10 percentr organic store expansion in more provincial areas (second to fourth class municipalities) as well as the development and expansion of Puremart in dense communities.
The firm acquired Puremart’s 153 stores for ₱568 million last year to address its need to fill the gap in “proximity shipping.” It noted that Puremart stores, at an average of 150 square meters each, are cheaper to put up at a cost of about ₱2.5 million each.
The firm also aims to increase the number of its loyal shoppers through wholesale initiatives and marketing programs, localized assortment, pricing and promo initiatives, as well as develop its hospitality, resturants, and cafes business.
It also aims to increase basket size and profit margins by disproportionately growing its Fresh category and house brands as well as enter into joint business plans with top suppliers to grow base brands and develop growth categories.
To support its Fresh plans, Puregold aims to develop a robust cold chain and structure and reinvent its end-to-end supply chain.
With these measures, Puregold expects to grow its gross profit margin to hit the 15.5 percent to 16.5 percent target for Puregold stores and up to 21.5 percent to 22.5 percent for S&R warehouses.
“As we look to 2025, we are implementing an aggressive store expansion strategy, prioritizing key provincial markets,” said PGOLD President Ferdinand Vincent Co.
He added that, “This strategic initiative is designed to drive continued growth, expand our market footprint, and enhance customer shopping satisfaction, convenience, and accessibility, ultimately positioning us for long-term value creation.”
