Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — H1 2021 Earnings Presentation
19 slides from Puregold Price Club's earnings presentation, August 2021
Slide 1: 1H 2021 Results and Performance
Company Presentation 1H 2021 Results and Performance August 2021
Slide 2: Disclaimer
Disclaimer These presentations and/or other documents have been written and presented by Puregold Price Club, Inc. (PGOLD). PGOLD is solely responsible for the accuracy and completeness of the contents of such presentations and/or other documents. Third parties, other than PGOLD, do not have any res
Slide 3: Puregold Enterprise
Puregold Enterprise S&R • Membership shopping model • Catering to the upper income customers • Class A & B and upper C segment • Imported and large size SKUs Puregold • Caters to the low income and low-middle income customers • Lower C, D and E market • Sari sari store customers/resellers • Popular
Slide 4: Store roll-out through FY 2020
Store roll-out through FY 2020 436 469 408 360 298 215 102 64 16 30 1 3 1998 2001 2006 2008 2010 2011 2013 2015 2017 2018 2019 2020 First store Expansion Brand recognition Market leadership Rapid expansion via organic Continuing new stores roll- • Opened in • Launched loyalty • Reader’s Digest • The
Slide 5: 5 Pillars of Growth in 2021
5 Pillars of Growth in 2021 1. Protect our Supply Chain - Revised inventory targets for emerging categories, food preparation and health/sanitation - Increased inventory levels since most companies had supply chain disruptions during lockdown and raw materials/packaging material sourcing - Develop l
Slide 6: 5 Pillars of Growth in 2021
5 Pillars of Growth in 2021 3. New Channel Development & Marketing Activities ‒ Reactivate coverage of sari-sari stores ‒ Opening up of new accounts ‒ E-commerce investments 4. Margin Improvement - House Brands - Streamlining of current operations thru improved processes and digitization - Smart pri
Slide 7: Update on Puregold
Update on Puregold – 1H 2021 7
Slide 8: 1H 2021 Results and Performance
1H 2021 Results and Performance • Consolidated net sales is lower by 7.1% in 1H 2021; • Gross profit grew by 6.7% in 1H 2021; with gross profit margin improving to 18.7% • Operating income increased by 7.5% in 1H 2021; with operating margin at 8.1% • Consolidated Net income increased by 17.3% in 1H
Slide 9: Operating Performance – 1H 2021
Operating Performance – 1H 2021 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 28% Revenue contribution 72% Gross profit (PHP million) & Margin (%) 9,072 (16.5%) 5,206 (24.6%) Total traffic (million) 53.8 5.1 Average net ticket (PHP) 1,023 4,492 Net sales growth (%) -11.5% 7
Slide 10: Operating Performance – 1H 2021
Operating Performance – 1H 2021 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) 537,965 565,995 587,534 599,029 Group 2018 2019 2020 1H 21 Hypermarket 208 230 244 256 4,666 4,078 4,666 Supermarket 104 103 100 100 4,126 103,529 103,529 83,048 92,883 Extra 42 47 59 62 S&R 16 18 20
Slide 11: Store Portfolio – 1H 2021
Store Portfolio – 1H 2021 Key statistics 1H 2021 Geographic coverage Total no. of • 484 BULACAN Caloocan stores North Luzon • 256 hypermarkets; Valenzuela (121 stores) 100 supermarkets; Quezon City No. of stores 62 extras Navotas Malabon per format Caloocan • 20 S&Rs Marikina Metro Manila • 46 S&R Q
Slide 12: Financial Performance – 1H 2021
Financial Performance – 1H 2021 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 154.49 168.63 35 141.14 29.16 30 23.93 25.95 27.0 25 81.96 76.18 20 14.28 22.0 15 13.38 18.7% 17.0% 16.8% 17.3% 16.3% 10 17.0 5 0 12.0 2018 2019 2020 1H 20 1H 21 2018 2019 2020 1H 20 1H 21 Gross Profi
Slide 13: Financial Performance – 1H 2021
Financial Performance – 1H 2021 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 25,000 40.0% 35.0% 4,000 15.0% 18,954 16,639 17,830 20,000 3,263 3,155 30.0% 3,000 2,941 25.0% 15,000 1,611 1,561 10.0% 9,277 9,697 20.0% 2,000 10,000 15.0% 5.0% 1,000 2.1% 2.1% 1.9% 2.0% 2.
Slide 14: Financial Performance – 1H 2021
Financial Performance – 1H 2021 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 10,000 15.0% 13,357 8,053 13.0% 11,384 8,000 17.0% 6,773 11.0% 10,231 6,200 8.1% 6,000 3,986 9.0% 6,143 12.0% 4.4% 4.8% 3,397 7.0% 7.4% 7.9% 5,714 4,000 4.4% 5.2% 7.2% 7.0% 4.1%
Slide 15: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 25,000 2 0 16,997 17,659 18,528 109.53 118.24 124.03 20,000 2 15,000 2 0 9,072 62.19 55.05 10,000 8,703 16.5% 1 15.5% 14.9% 14.9% 1 0 5,000 14.0% 1 0 - 1 2018 2019 2020 1H 20 1H 21 2018 2019 202
Slide 16: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 18,000 70. 44.61 16,000 60. 14,000 36.32 10,628 31.61 12,000 50. 10,000 8,291 5,206 19.77 21.14 6,932 4,676 40. 8,000 24.6% 6,000 22.8% 23.8% 23.6% 30. 4,000 21.9% 20. 2,000 - 10. 2018 2019 2020 1H 2
Slide 17: Financial Performance – 1H 2021
Financial Performance – 1H 2021 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2019 2020 1H 21 Trade Receivables Days 6.6 4.1 2.9 New Puregold Store roll out and new S&R Inventory Days 55.4 52.6 63.6 Stores to open in 2021 Similar payments terms to
Slide 18: CAPEX Guidance for FY 2021
CAPEX Guidance for FY 2021 • CAPEX Budget of Php 4.1 to 4.7 billion in 2021 – Php 1.7 to 2.3 billion for 30 to 40 new Puregold Stores – Php 1.6 billion for 2 S&R stores – Php 200 million for 10 S&R QSR – Php 600 million Maintenance Capex 18
Slide 19: In Summary
In Summary • Bullish for 2021 as the economy opens up given the massive vaccination program starting in the 3rd quarter • Continue our aggressive expansion plans • Marketing plans are improved upon to cope with current pandemic and shopper trends • Sari-sari store recovery is on track • Joint busine