Saturday, March 3, 2012

News Update Puregold Targets P39-B 2012 Revenues And Allots P3B For Expansion

MANILA, Philippines - Puregold Price Club Inc. is aiming to grow its net sales by 25 percent to P39 billion this year on the back of new store openings in 2012 as well as the full-year contributions of stores opened in 2011.
In an analysts briefing, the firm said net sales of existing stores are targeted to grow 4 percent while the bulk of revenue growth will come from the full-year operations fo 38 stores opened in 2011. It also intends to open 25 stores this year.
The firm said it has already opened its first hypermart in Benguet at the start of the year while the remaining 24 new store locations have been contracted and in various stages of design development and construction.
Puregold said the growth will also be boosted by its plan to acquire sister company S&R Membership Shopping which will allow it to cater to higher end segment of the market and allow it to complete all income segments.
Puregold is now getting an independent third-party valuation of Puregold and S&R prior to its plan to acquire the smaller sister company.
S&R was acquired by the Co family in 2006 and operated the firm through a wholly-owned company called Kareila Management Corporation. It currently has six stores in Taguig, Muntinlupa, Quezon City, Baclaran, Pampanga and Cebu.
Puregold is aiming to raise gross and net profit margin by 14 percent and 4 percent, respectively. The firm said continuing suppliers' support arising from a growing scale of operations will dramatically contribute to the sustainability of margins.
Puregold said it is allotting about P3 billion for its capital expenditures this year which will finance the opening of new stores.
About P2 billion of the capex will be funded by the balance of the proceeds of Puregold's initial public offering while P1 billion will come from internally generated funds.