Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — 9M 2018 Earnings Presentation
18 slides from Puregold Price Club's earnings presentation, November 2018
Slide 1: Puregold Price Club, Inc. Company Presentation – 9M 2018 Results
PUREGOLD PRICE CLUB, INC. Company Presentation 9M 2018 Results and Performance November 2018
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: Investment Summary
Investment Summary 1. Sustained economic growth of the Philippines 2. Exposure to growing & robust consumer sector 3. Visible growth pipeline in the next 5 years 4. Focused core target market per brand 5. Expansion of new store formats aimed at the broad-C market 6. Expansion to new geographic locat
Slide 4: Store roll-out through FY 2017
Store roll-out through FY 2017 372 329 298 248 215 158 102 64 16 30 1 3 1998 2001 2006 2008 2010 2011 2012 2013 2014 2015 2016 2017 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: Update on Puregold
Update on Puregold – 9M 2018 5
Slide 6: 9M 2018 Results and Performance
9M 2018 Results and Performance • Opened 21 new PGOLD stores; 2 S&R Warehouse and 5 S&R New York Style Pizza (QSR) and closed down 2 Puregold Stores in 9M 2018 • Operating 397 stores in 9M 2018; with consolidated NSA of more than 542,000 sqm • Consolidated net sales expanded by 14% in 9M 2018; Pureg
Slide 7: Operating Performance
Operating Performance – 9M 2018 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 22% Revenue contribution 78% Gross profit (PHP million) & Margin (%) 11,672 (15.0%) 4,676 (21.3%) Total traffic (million) 132 5.8 Average net ticket (PHP) 591 3,817 Net sales growth (%) 11.1% 25.6
Slide 8: Operating Performance
Operating Performance – 9M 2018 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) 426,559 486,722 518,862 542,459 Group 2015 2016 2017 9M 18 3,863 2,715 3,509 72,904 83,048 Hypermarket 134 147 171 201 62,037 1,720 50,963 Supermarket 93 100 103 104 Extra 28 30 35 40 442,449 455,548
Slide 9: Store Portfolio
Store Portfolio – 9M 2018 Key statistics 9M 2018 Geographic coverage Total no. of 397 BULACAN Caloocan stores North Luzon 201 hypermarkets; Valenzuela (95 stores) 104 supermarkets; Quezon City No. of stores 40 extras Navotas Malabon per format Caloocan 16 S&Rs Marikina Metro Manila 36 S&R QS
Slide 10: Financial Performance – 9M 2018
Financial Performance – 9M 2018 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 124.49 112.59 25 97.17 99.82 20.65 87.56 20 18.54 16.35 27.0% 16.49 14.45 15 22.0% 10 17.0% 5 17.0% 16.5% 16.6% 16.5% 16.4% 0 12.0% 2015 2016 2017 9M 17 9M 18 2015 2016 2017 9M 17 9M 18 Gross Profit G
Slide 11: Financial Performance – 9M 2018
Financial Performance – 9M 2018 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 18,000 40.0% 16,000 15,516 35.0% 4,000 13,707 12,942 3,500 3,266 3,513 2,443 2,826 14,000 14.0% 12,225 30.0% 3,000 2,886 12,000 12.0% 11,238 25.0% 2,500 10,000 10.0% 20.0% 2,000 8.0% 8,000 6
Slide 12: Financial Performance – 9M 2018
Financial Performance – 9M 2018 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 10,000 35.0%7,000 25.0% 8,097 8,652 5,840 8,000 6,233 30.0%6,000 5,526 4,618 20.0% 7,150 5,002 3,899 5,654 25.0%5,000 6,000 20.0%4,000 15.0% 4,000 15.0%3,000 10.0% 7.4% 7.2% 7.0
Slide 13: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 98.62 20,000 25.0% 90.94 79.61 70.1 77.89 13,831 15,030 10,641 11,672 23.0% 15,000 12,480 21.0% 10,000 19.0% 17.0% 5,000 15.7% 15.2% 15.2% 15.2% 15.0% 15.0% - 13.0% 2015 2016 2017 9M 17 9M 18 20
Slide 14: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 25.87 7,000 70.0% 5,625 4,676 21.65 21.93 6,000 4,708 60.0% 17.82 5,000 3,807 17.46 4,008 50.0% 4,000 40.0% 3,000 30.0% 2,000 22.5% 21.7% 21.7% 21.8% 21.3% 1,000 20.0% - 10.0% 2015 2016 2017 9M 17 9M
Slide 15: Financial Performance – Working Capital Days
Financial Performance – 9M 2018 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2015 2016 2017 9M18 Trade Receivables Days 5.7 6.0 7.0 5.4 New Puregold Store roll out and new S&R Inventory Days 54.3 56.9 59.8 62.3 Stores to be opened in 2018 Trade Pa
Slide 16: CAPEX Guidance for FY 2018
CAPEX Guidance for FY 2018 • CAPEX Budget of Php 3.65 billion in 2018 – Php 1 billion for 25 new Puregold Stores – Php 1.5 billion for 2 S&R stores – Php 200 million for 12 S&R QSR – Php 250 million IT System Upgrade – Php 700 million Maintenance Capex • To be funded by internally generated cash and
Slide 17: Guidance for 2018
Guidance for 2018 • Consolidated net sales targeted to grow by 12 to 14% driven by the following: – Net sales growth from organic Puregold and S&R stores – Positive SSSG for Puregold (4 to 6%) and S&R (4 to 6%) – Opening of 25 new Puregold stores – Opening of 2 S&R Warehouse stores & 12 S&R QSRs – C
Slide 18: Q&A Thank you!
Q&A Thank you! 18