Lucio Co-led Puregold Price Club reported a spike in profits in the third quarter on stronger sales, making the company optimistic of hitting a 20 percent revenue growth target for 2014.
Antonio delos Santos, Puregold vice president of operations, said in a press briefing that the company has ‘”recovered” in its third quarter profits and sales compared to the previous quarter, which declined 6.6 percent in net profits.
He said the company is now confident that it will hit the 20 percent revenue growth target for 2014, after net sales grew “around 15 percent” in the first nine months of the year.
“We have already recovered; we’re well on our way. We will hit the targets,” delos Santos said.
With the opening of its 26th store, Puregold hypermarket, along Quirino Highway on Tuesday, the company has already exceeded its 25 new stores planned for this year.
Delos Santos said the company has allotted P3 billion in capital expenditures for the 25-store openings this year, with each store costing P100 million to P250 million to put up.
As of press time, the company has a total of 226 stores in its network, which comprise of 120 Puregold price clubs or hypermarkets, 76 Puregold Jr. stores, and 29 Puregold extras.
Besides the Puregold stores and S&R membership shopping marts in its portfolio, Puregold has expanded into the “mini-mart” format where the company would invest at least P100,000 for sari-sari store owners to transform the neighborhood stores into mini-marts.
Delos Santos said this is a company effort to help the small and medium enterprises (SMEs) grow their businesses.
He also said that the firm has already built five mini-marts out of the total 50 mini-marts targeted to be established next year.
Puregold recorded a 6 percent dip in its first half net income amounting to P1.656 billion from P1.772 billion, while revenues climbed 16.8 percent to P38.549 billion from P33.017 billion a year ago.
The Co-led supermarkets operator also plans to expand to the convenience stores retail format by bringing Japan’s Lawson convenience stores in the country.
This will be the group’s front line in the booming convenience stores arena against strong competitors that include Ayala Land’s FamilyMart, SM Group’s Alfamart, Villar Group’s All Day, Gokongwei family’s Ministop, US-based newbie Circle K and the market leader 7-Eleven. Kristyn Nika M. Lazo