Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — FY2021 and Q1 2022 Earnings Presentation
79 slides from Puregold Price Club's earnings presentation, May 2022
Slide 1: SEC Form 17-C Cover Sheet
COVER SHEET A 1 9 9 8 1 3 7 5 4 SEC Registration Number P UR EGO L D PR I CE CLUB , I NC . (Company's Full Name) NO . 9 0 0 ROM U A L D E Z S T . , PACO , MAN I L A (Business Address: No. Street City/Town/Province) CANDY H. DACANAY-DATUON (632) 8522-8801 to 04 (Contact Person) (Company Telephone Num
Slide 2: SEC Form 17-C Current Report
SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATIONS CODE AND SRC RULE 17.2 (C) THEREUNDER Date of Report May 31, 2022 SEC Identification Number A199813754 BIR Tax Identification Number 201-277-095 Name of Issuer as specified in its charter P
Slide 3: Signature
SIGNATURE Pursuant to the requirements of the Securities Regulation Code, the issuer has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PUREGOLD PRICE CLUB, INC. CANDY H. D Y - UON Assistant Corp r S cret. & Compliance Officer
Slide 4: FY21 & 1Q22 Results and Performance
Company Presentation FY21 & 1Q22 Results and Performance May 2022
Slide 5: 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 6: Macroeconomic Updates
Macroeconomic Updates TTM GDP vs TTM PGOLD Sales 20,500,000 175,000 20,000,000 170,000 165,000 19,500,000 160,000 19,000,000 155,000 18,500,000 150,000 18,000,000 145,000 17,500,000 140,000 17,000,000 135,000 16,500,000 130,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 GDP PGOLD 3
Slide 7: Macroeconomic Updates
Macroeconomic Updates Source: Euromonitor 4
Slide 8: Traditional Retail Captures Spend
Traditional Retail Captures Spend 5
Slide 9: Financial Performance – FY 2021
Financial Performance – FY 2021 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 168.63 164.12 35 29.16 30.08 30 25.95 27.0% 25 154.49 20 22.0% 15 17.3% 18.3% 16.8% 10 17.0% 5 0 12.0% 2019 2020 2021 2019 2020 2021 Gross Profit GP Margin • Conso Net Sales dampened YoY but still lar
Slide 10: Financial Performance – FY 2021
Financial Performance – FY 2021 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 25,000 40.0% 4,000 14.0% 18,953 20,350 35.0% 3,500 3,263 3,155 3,210 20,000 12.0% 17,830 30.0% 3,000 10.0% 15,000 25.0% 2,500 2,000 8.0% 20.0% 10,000 6.0% 15.0% 1,500 1,000 2.1% 1.9% 2.0% 4.
Slide 11: Financial Performance – FY 2021
Financial Performance – FY 2021 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 15,000 35.0% 10,000 20.0% 8,067 8,180 13,000 11,384 11,433 30.0% 8,000 11,000 10,652 25.0% 6,773 15.0% 9,000 6,000 20.0% 10.0% 7,000 7.9% 7.9% 15.0% 4,000 5.0% 5,000 7.4% 4.4% 4
Slide 12: Store Portfolio – FY 2021
Store Portfolio – FY 2021 Key statistics FY 2021 Geographic coverage Total no. of 499 BULACAN Caloocan stores North Luzon 263 hypermarkets; Valenzuela (125 stores) 100 supermarkets; Quezon City No. of stores 28 extra; 39 minimart Navotas Malabon per format Caloocan Marikina 22 S&Rs Metro Manil
Slide 13: Operating Performance – FY 2021
Operating Performance – FY 2021 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) Group 2019 2020 2021 800,000 537,965 565,955 587,534 611,105 700,000 Hypermarket 230 244 263 600,000 4,666 4,797 4,126 4,078 Supermarket 103 100 100 500,000 83,048 92,883 103,529 113,950 Extra & MM 4
Slide 14: Operating Performance – FY 2021
Operating Performance – FY 2021 Format Hypermarket, supermarket, extra Membership shopping S&R 30% Puregold Revenue contribution 70% Gross profit (PHP million) & Margin (%) 18,476 (16.0%) 11,607 (23.7%) Total traffic (million) 111 10.8 Average net ticket (PHP) 1,036 4,785 Net sales growth (%) -7.2%
Slide 15: Review of Pillars of Growth ’20 – ’21
Review of Pillars of Growth ’20 – ’21 1. Protect our Supply Chain - Inventory levels raised (65 days vs 53 days in 2020) 2. Improve Logistics end-to-end - Last mile capability is 92% order fulfillment next day delivery - Improved delivery capacity via transport management 3. New Channel Development
Slide 16: Out of Store Chassis: Puregold APAR
Out of Store Chassis Puregold APAR 13
Slide 17: Out of Store Chassis: Puregold Rolling Stores
Out of Store Chassis Puregold Rolling Stores 14
Slide 18: Out of Store Chassis: Puregold Caravan
Out of Store Chassis Puregold Caravan 15
Slide 19: ECommerce
~ PUREGOLD ECommerce PUREGOLD M@BILE cHoose FROM SHOP USING THE INSTORE FIGCUP OR ‘SEARCH FEATURE OR BY ‘BARCODE SCANNING WW PUTEGO wnncm ya Sy \ Lazada
Slide 20: Social Media
= PuREGOLD l ay an \ Social Media Puregold Price Club pioneers ‘shoppertainment’ in the Philippines = National retailer Puregold Price Club has launched a social media entertainment nding its store network. (an BIONES mobile app and is ov PANGMALAKASANG GOOD VIBES. channel, in addition to = In July
Slide 21: Sustainability Highlights
Sustainability Highlights 18
Slide 22: Sustainability Highlights
Sustainability Highlights 19
Slide 23: Sustainability Highlights
Sustainability Highlights 20
Slide 24: Management Guidance 2022
Management Guidance 2022 • Consolidated Revenue Growth: 7% to 9% target • GP Margin: • Puregold Stores: 15% to 16% target • S&R WH: 22% to 22.50% target 21
Slide 25: CAPEX Guidance for FY 2022
CAPEX Guidance for FY 2022 • CAPEX Budget of Php 5.8 billion in 2022 – Php 2 billion for 35 new Puregold Stores – Php 2.8 billion for 3 S&R stores + 5 S&R QSR – Php 1 billion for maintenance capex, solar projects and IT upgrades 22
Slide 26: Annex
Annex 23
Slide 27: Financial Performance: For 2021
Financial Performance: For 2021 24
Slide 28: Financial Position as of end-2021
Financial Position as of end-2021 25
Slide 29: Financial Position as of end-2021
Financial Position as of end-2021 26
Slide 30: Financial Position as of end-2021
Financial Position as of end-2021 27
Slide 31: Cash Flows Period Ended Dec 2021
Cash Flows Period Ended Dec 2021 28
Slide 32: Cash Flows Period Ended Dec 2021
Cash Flows Period Ended Dec 2021 29
Slide 33: Cash Flows Period Ended 1Q2022
Cash Flows Period Ended 1Q2022 30
Slide 34: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 25,000 24.0% 150 20,000 17,659 18,528 18,476 118.24 124.03 115.14 22.0% 15,000 20.0% 100 10,000 16.0% 18.0% 50 14.9% 14.9% 16.0% 5,000 14.0% 0 - 12.0% 2019 2020 2021 2019 2020 2021 GP GP Margin
Slide 35: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 18,000 70.0% 16,000 60.0% 49.04 14,000 11,607 44.61 12,000 10,628 50.0% 36.32 10,000 8,291 40.0% 8,000 6,000 23.8% 23.7% 30.0% 4,000 22.8% 20.0% 2,000 - 10.0% 2019 2020 2021 2019 2020 2021 GP GP Marg
Slide 36: Financial Performance – FY 2021
Financial Performance – FY 2021 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2019 2020 2021 Trade Receivables Days 6.6 4.1 3.3 Inventory Days 55.4 52.6 57.5 Increased buffers Trade Payables Days 22.9 21.5 24.8 Similar payments terms to suppliers t
Slide 37: Puregold Enterprise
Puregold Enterprise Puregold • Caters to the low income and low-middle income customers • Lower C, D and E market • Sari sari store customers/resellers • Popular local and small sized SKUs S&R • Membership shopping model • Catering to the upper income customers • Class A & B and upper C segment • Im
Slide 38: Puregold Stores
Puregold Stores 35
Slide 39: Puregold Stores
Puregold Stores 36
Slide 40: S&R Warehouse
S&R Warehouse 37
Slide 41: END
END 38
Slide 42: FY21 & 1Q22 Results and Performance
Company Presentation FY21 & 1Q22 Results and Performance May 2022
Slide 43: 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 44: Macroeconomic Updates
Macroeconomic Updates TTM GDP vs TTM PGOLD Sales 20,500,000 175,000 20,000,000 170,000 165,000 19,500,000 160,000 19,000,000 155,000 18,500,000 150,000 18,000,000 145,000 17,500,000 140,000 17,000,000 135,000 16,500,000 130,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 GDP PGOLD 3
Slide 45: Macroeconomic Updates
Macroeconomic Updates Source: Euromonitor 4
Slide 46: Traditional Retail Captures Spend
Traditional Retail Captures Spend 5
Slide 47: Macro Highlights 2022
Macro Highlights 2022 • Local • Election spending not felt in 1Q22 • Omicron Surge and High Alert levels in 1Q22 • Better Mobility starting March • Sensitivity of lower C,D,E markets to macro envt • Robust A,B and upper C markets • Better recovery outside Metro Manila • Sensitivity to USD-PHP Exchan
Slide 48: Financial Performance – 1Q22
Financial Performance – 1Q22 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 154.49 168.63 164.12 35 29.16 30.08 30 25.95 27.0% 25 20 19.1% 20.0% 22.0% 15 17.3% 18.3% 37.73 38.51 16.8% 7.70 10 7.21 17.0% 5 0 12.0% 2019 2020 2021 1Q 21 1Q 22 2019 2020 2021 1Q 21 1Q 22 Gross Profit
Slide 49: Financial Performance – 1Q22
Financial Performance – 1Q22 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 25,000 40.0% 20,350 35.0% 20,000 17,830 18,953 30.0% 4,000 15.0% 3,263 3,155 3,210 15,000 25.0% 3,000 20.0% 10.0% 10,000 2,000 810 4,714 4,954 15.0% 707 5.0% 11.5% 12.4% 12.5% 12.9% 10.0% 1,000
Slide 50: Financial Performance – 1Q22
Financial Performance – 1Q22 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 15,000 20.0%10,000 15.0% 9,000 13,000 18.0% 8,067 8,180 13.0% 11,384 11,433 10,652 8,000 11,000 16.0% 7,000 6,773 11.0% 14.0% 6,000 9.0% 9,000 5.0% 7,000 7.9% 7.9% 12.0% 5,000 4.4%
Slide 51: Store Portfolio – 1Q 2022
Store Portfolio – 1Q 2022 Key statistics 1Q 2022 Geographic coverage Total no. of 504 BULACAN Caloocan stores North Luzon 268 hypermarkets; Valenzuela (127 stores) 100 supermarkets; Quezon City No. of stores 28 extra; 39 minimart Navotas Malabon per format Caloocan Marikina 22 S&Rs Metro Manil
Slide 52: Operating Performance – 1Q 2022
Operating Performance – 1Q 2022 Format Hypermarket, supermarket, extra Membership shopping S&R 31% Puregold Revenue contribution 69% Gross profit (PHP million) & Margin (%) 4,776 (17.9%) 2,922 (24.7%) Total traffic (million) 28.8 2.5 Average net ticket (PHP) 928 4,775 Net sales growth (%) -2.0% 5.8%
Slide 53: Operating Performance – 1Q 2022
Operating Performance – 1Q 2022 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) Group 2020 2021 1Q22 565,955 587,534 611,105 615,878 800,000 Hypermarket 244 263 268 4,797 4,797 Supermarket 100 100 100 600,000 4,078 4,666 92,883 103,529 113,950 113,950 Extra & MM 59 67 67 400,000
Slide 54: Review of Pillars of Growth ’20 – ’21
Review of Pillars of Growth ’20 – ’21 1. Protect our Supply Chain - Inventory levels raised (65 days vs 53 days in 2020) 2. Improve Logistics end-to-end - Last mile capability is 92% order fulfillment next day delivery - Improved delivery capacity via transport management 3. New Channel Development
Slide 55: Transaction Count 2021 to May 2022
Transaction Count 2021 to May 2022 14
Slide 56: Shopper Trends 2022
Shopper Trends 2022 1. SSS ticket size up from P66 to P77 (Kantar). 2. HORECA rebound 3. Increasing foot traffic 4. Pre-pandemic key categories rebound (Back to school/work) 5. Importance of “Affordability” across all segments 15
Slide 57: Pillars of Growth in ’22 - ’23
Pillars of Growth in ’22 - ’23 1. Store Expansion – +15% increase in pace for new Puregold-only stores and more provincial areas (more than 70% of new stores) – Initial foray into Central Visayas (Cebu) which is 7% of Phils. GDP (via Melillia Management acquisition) 2. Increase Shopper Count – Incre
Slide 58: Pillars of Growth in ‘22 – ‘23
Pillars of Growth in ‘22 – ‘23 4. Robust end-to-end Supply Chain – Balance “Just in Case” with “Just in Time’ inventories – Improve Fresh – Order fulfillment from 92% to 95% next day delivery via cross-dock and fleet capacity improvements 17
Slide 59: Out of Store Chassis: Puregold APAR
Out of Store Chassis Puregold APAR 18
Slide 60: Out of Store Chassis: Puregold Rolling Stores
Out of Store Chassis Puregold Rolling Stores 19
Slide 61: Out of Store Chassis: Puregold Caravan
Out of Store Chassis Puregold Caravan 20
Slide 62: ECommerce
ECommerce PUREGOLD Ced M@BILE CHOOSE FROM ASEQRUSING THE, IN-STOREPICK-UPOR DELIVERY SERVICE SSARGODE SCANNING" wi 0.9 gee a "@ Bowe ~~ = my ses Sa) preraioapservices : ‘Don't have an app yet? Scan here to download! b. SHOP ANYTIME AND ANYWHERE! WPUTEGO Get 10% off “a Kz Lazada =" PUREGOLD
Slide 63: Social Media
© PUREGOLD rrfr~ Social Media Puregold Price Club pioneers ‘shoppertainment’ in the Philippines + National retailer Puregold Price Club has launched a GYUBCYS mobile app and its own social media entertainment PANGMALATASANG 6000 VIBES channel, in addition to ex * In July 2021, the retailer reported
Slide 64: Sustainability Highlights
Sustainability Highlights 23
Slide 65: Sustainability Highlights
Sustainability Highlights 24
Slide 66: Sustainability Highlights
Sustainability Highlights 25
Slide 67: Management Guidance 2022
Management Guidance 2022 • Consolidated Revenue Growth: 7% to 9% target • GP Margin: • Puregold Stores: 15% to 16% target • S&R WH: 22% to 22.50% target 26
Slide 68: CAPEX Guidance for FY 2022
CAPEX Guidance for FY 2022 • CAPEX Budget of Php 5.8 billion in 2022 – Php 2 billion for 35 new Puregold Stores – Php 2.8 billion for 3 S&R stores + 5 S&R QSR – Php 1 billion for maintenance capex, solar projects and IT upgrades 27
Slide 69: Annex
Annex 28
Slide 70: Financial Performance for 1Q 2022
Financial Performance for 1Q 2022 29
Slide 71: Financial Position as of end-1Q2022
Financial Position as of end-1Q2022 30
Slide 72: Financial Position as of end-1Q2022
Financial Position as of end-1Q2022 31
Slide 73: Financial Position as of end-1Q2022
Financial Position as of end-1Q2022 32
Slide 74: Cash Flows Period Ended 1Q2022
Cash Flows Period Ended 1Q2022 33
Slide 75: Cash Flows Period Ended 1Q2022
Cash Flows Period Ended 1Q2022 34
Slide 76: Financial Performance – Puregold Only 1Q22
Financial Performance – Puregold Only 1Q22 Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 150 130 118.24 124.03 115.14 25,000 24.0% 110 20,000 17,659 18,528 18,476 22.0% 90 20.0% 15,000 70 17.0% 17.9% 10,000 16.0% 4,776 18.0% 50 27.24 26.68 14.9% 14.9% 4,619 16.0% 30 5,000 14.0%
Slide 77: Financial Performance – S&R Only 1Q22
Financial Performance – S&R Only 1Q22 Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 18,000 70.0% 16,000 49.04 60.0% 44.61 14,000 10,628 11,607 12,000 36.32 50.0% 10,000 8,291 8,000 2,922 24.7% 40.0% 2,592 24.7% 6,000 23.8% 23.7% 30.0% 10.49 11.82 4,000 22.8% 20.0% 2,000 - 10.0%
Slide 78: Financial Performance – 1Q 2022
Financial Performance – 1Q 2022 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2020 2021 1Q22 Trade Receivables Days 4.1 3.3 2.9 Inventory Days 52.6 57.5 66.2 Increased buffers Trade Payables Days 21.5 24.8 22.7 Similar payments terms to suppliers t
Slide 79: END
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Puregold Price Club — FY2021 and Q1 2022 Earnings Presentation on 6ix