PUREGOLD
PRICE CLUB, INC.
(PGOLD)
Sector: Retail
Financial Highlights
The company at
the end of CY 2016 has 329 stores, with an aggregate net selling area of more
than 486,700 square meters. These stores are located in Metro Manila - 130, North
Luzon - 83, South Luzon – 93, Visayas – 12, and Mindanao – 11 stores.
Capital
expenditures for 2017 is P2.5 billion, to be funded by internally generated
cash and short-term untapped bank credit lines, if necessary, for 25 Puregold
stores (P1 billion), 2 S&R stores (P1.2 billion), 10 S&R QSR (P150
million) and 25 Lawson stores (P150 million). It is expected that by 2017
consolidated net sales will grow by 8 to 10% and pursue acquisition and
expansion into new locations.
Company Profile
The story is often told of how Puregold was borne out of the
concern for the welfare and fate of its employees. The Asian financial crisis
of 1997 brought about a turbulent economy, volatile foreign exchange and an
uncertain future. Faced with such challenges, but worried about how their loyal
employees would survive the times, husband and wife Lucio and Susan Co decided
to try their luck and venture into local retailing, with the opening of the
first Puregold Price Club along Shaw Boulevard in Mandaluyong City back in December
12, 1998.
The Company was the
second largest retailer among hypermarkets, supermarkets and cash and carries
in the Philippines based on gross sales in 2010 according to Planet Retail. The
Company’s customers comprise retail consumers and small business owners who
resell products in local neighborhood convenience stores, known as
‘‘sari-sari’’ stores, as well as canteens, restaurants, bakeries and drug
stores, among others. In addition to focusing on middle to lower income retail
consumers, the Company believes it is the only hypermarket supermarket retailer
in the Philippines which strategically and targets local resellers. The Company
also promotes a one-stop shopping concept of having a wide selection of goods
to further serve its value-conscious consumers and resellers. With this
differentiated business model, the Company has established a brand that has
become associated with low prices, value-for money and a wide assortment of
goods on offer, as well as being recognized as one of the top five brands in
the Philippines in Retail Asia Magazine’s 2010 and 2011 Retail Asia-Pacific Top
500 program.
Puregold launched its Initial Public Offering at the
Philippine Stock Exchange, gaining recognition as the Best Mid-Cap Equity Deal
by Finance Asia in February 2012. The IPO helped to fuel its rapid expansion,
catapulting the company to a network of more than 280 stores, reaching to cover
the entire Philippines, with a strong market presence in Luzon and NCR, and an
up-and-coming contender in Visayas and Mindanao. To deepen its regional
footprint, Puregold has acquired four regional supermarkets, Parco (2012),
Grocer-E (2013), NE (2015) and Budgetlane (2015). It has also purchased the
S&R Membership Shopping chain (2012), catering to the high-end retail
market, and has since ventured into the QSR (Quick Service Restaurant) segment
with its widely popular S&R Foodservice. Aggressively exploring new formats
to better serve its customers, Puregold has established 16 Lawson convenience
stores in Metro Manila through its joint venture with Lawson of Japan, and its
first mall-based supermarket collaboration with Ayala Land, Merkado. And in
2016, as consumers spend more time online and are shifting to online
shopping—Puregold.com.ph is there, as an online shopping platform—positioning
Puregold to compete in the new e-commerce landscape.
As of June 30, 2016, the shareholding structure of the
Company is as follows: Cosco Capital
Inc. – 51%; Non-public – 16.39 and Public – 32.61%.
Board of Directors:
·
Lucio Co – Chairman
·
Susan Co
– Vice Chairman
·
Ferdinand Vincent Co – President
·
Leonardo Dayao
– Director
·
Pamela Justine Co
– Director
·
Marilyn Pardo
– Independent Director
·
Edgardo Lacson
– Independent Director
Price: 44.15 per share (April 5,
2017)
Market
Cap: P122 Billion
(April 5, 2017)
2016
|
2015
|
2014
|
2013
|
|
Net Sales (Bil)
|
112.59
|
97.17
|
84.70
|
73.20
|
Net Income (Bil)
|
5.53
|
5.00
|
4.52
|
3.96
|
Address:
2/F Tabacalera Building, 900 D. Romualdez Street, Paco 1007,
Manila, Philippines