Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — Q1 2024 Earnings Presentation
27 slides from Puregold Price Club's earnings presentation, May 2024
Slide 1: NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO
NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO
Slide 2: 1Q24 Results & Performance
1Q24 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation May 2024 Years of Serbisyong Always Panalo Para Sa Pilipino
Slide 3: 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 4: Pure Play Philippine Food Retailer
Pure Play Philippine Food Retailer A Proxy for the Philippine Consumption Story • Robust topline growth from an enterprise with the broadest consumer segments • Healthy cash flows and a simple capital structure • Two marquee brands in Philippine retail: Puregold stores and S&R WHs • Beneficiary of a
Slide 5: Puregold Enterprise
Puregold Enterprise • 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 • Robust selling platform for all FMCG cos. doing business in PH • Membership shopping model • Catering to the upper inc
Slide 6: Shareholder Distribution
Shareholder Distribution Year EPS DIV 2016 2.00 0.40 2017 1.99 0.40 2018 2.24 0.40 2019 2.30 0.45 2020 2.81 0.50 2021 2.85 0.86 2022 3.24 0.97 2023 3.00 0.90 5YR CAGR 6.0% 17.6% EPS DIV * In Dec 2022, new dividend policy to declare as dividend at least 30% of income of the previous year 6
Slide 7: Pillars of Growth 2024
Pillars of Growth 2024 01 02 03 04 05 More Stores More Shoppers Bigger Baskets Robust ESG Supply Chain Sustainability • High potential • Disproportionate • +8% organic store shopper wholesale • Institute good expansion in more initiatives & “salo- Fresh growth/ • End to End Supply governance practic
Slide 8: Store Portfolio – 1Q 2024
Store Portfolio – 1Q 2024 GEOGRAPHIC COVERAGE KEY STATS NEW PG + S&R STORES 2024 TOTAL NUMBER OF STORES 575 Opened N.Luzon 157 9 new Puregold Stores 331 hypermarkets 98 supermarkets closed 2 stores 187 Metro Manila NO. OF STORES 66 extra/minimart PER FORMAT 26 S&Rs 155 S.Luzon 54 S&R QSRs 60 S&R NET
Slide 9: Financial Performance – 1Q 2024
Financial Performance – 1Q 2024 Php in thousands Q1 2024 % Q1 2023 % Change % Net Sales P47,317,537 100.0% P44,352,437 100.0% P2,965,100 6.7% Cost of Sales 38,062,942 80.4% 35,831,845 80.8% 2,231,096 6.2% Gross Profit 9,254,595 19.6% 8,520,591 19.2% 734,004 8.6% Other Operating Income 746,777 1.6% 7
Slide 10: Operating Performance – 1Q 2024
Operating Performance – 1Q 2024 Like-for-like REVENUE Puregold S&R CONTRIBUTION Growth % Mar 2024 Mar 2023 Mar 2024 Mar 2023 (449 stores) (427 stores) (21 wh) (22 wh) Net Sales 1.5% 8.8% -1.2% 16.8% Ticket -1.1% 0.2% 0.8% 3.6% Traffic 2.6% 8.7% -1.9% 12.7% 33% 67% Traffic (in thousands) Ticket Store
Slide 11: Financial Highlights – 1Q 2024
Financial Highlights – 1Q 2024 CONSO REVENUE GROSS PROFIT EBITDA MARGIN % MARGIN % NIAT 1Q 24 Php 47.3bn 19.6% 10.5% Php 2.48 bn YoY 6.7% +35 bps -24 bps +3% 11
Slide 12: Financial Performance – Conso 1Q 2024
Financial Performance – Conso 1Q 2024 NET SALES BREAKDOWN QTR NET SALES TREND in PHP Billions 6.7% 5.8% 31.7 30.0 8.6% 14.4 15.6 1Q 23 1Q 24 >> Record 1Q net sales. Mid Single-digit sales growth YoY for the group. >> 1Q24 YoY major contributors are higher traffic in PG store & S&R WHs, with slightly
Slide 13: Margin Trends – Conso 1Q 2024
Margin Trends – Conso 1Q 2024 20.0% 19.6% >> Groupwide competitive 18.3% 18.4% 17.8% 17.3% pricing initiatives for market 18.0% 16.8% share volume growth tempered GPM 16.0% by effect of joint business plans 14.0% with suppliers EBITDAM 12.0% 10.5% 10.7% 10.3% 10.5% 9.8% >> Higher OPEX due to more st
Slide 14: CAPEX Guidance for FY 2024
CAPEX Guidance for FY 2024 CAPEX Budget of Php 8.1 billion in 2024 Php 2.4 billion for 30 new Puregold Stores Php 3.8 billion for 4 S&R WHs and 6S&R QSRs Php 500 million for logistics capex Php 1.4 billion for maintenance capex, solar projects and IT upgrades 14
Slide 15: Updated Management Guidance 2024
Updated Management Guidance 2024 Consolidated Revenue Growth 5% to 8% target Gross Profit Margin Puregold Stores: 15.5% to 16.5% target S&R WH: 21.5% to 22.5% target 15
Slide 16: Q&A
FY2023 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation Q&A
Slide 17: Thank you
Thank you LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO O ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO AN
Slide 18: Annex
FY 2023 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation ANNEX
Slide 19: Financial Performance 1Q24 – PGOLD Only
Financial Performance 1Q24 – PGOLD Only NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 160 140 133.77 124.03 124.3 120 115.14 30,000 24.0% 100 25,000 20,178 21,239 22.0% 80 20,000 18,528 18,476 20.0% 15,000 18.1% 17.8% 16.0% 16.2% 15.9% 60 18.0% 29.96 31.69 10,000 14.9% 16.0% 5,
Slide 20: Financial Performance 1Q24 – PGOLD Only
Financial Performance 1Q24 – PGOLD Only EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions) 000 20.0% 18.0% 000 16.0% 000 9,930 9,471 10,152 9,753 14.0% 8,000 15.0% 000 12.0% 7,000 5,773 13.0% 9.8% 6,000 5,557 11.0% 000 8.0% 8.2% 8.2% 8.7% 10.0% 5,000 4,542 4,130 9.0% 7.3% 8.0% 0
Slide 21: Financial Performance 1Q24 – S&R Only
Financial Performance 1Q24 – S&R Only NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 80 70 65.27 60 60.00 20,000 18,000 70.0% 50 44.61 49.04 16,000 13,642 14,175 60.0% 40 14,000 12,000 10,628 11,607 50.0% 30 10,000 23.2% 40.0% 14.39 15.63 8,000 22.7% 21.6% 23.8% 23.7% 21.7% 20 3
Slide 22: Financial Performance 1Q24 – S&R Only
Financial Performance 1Q24 – S&R Only EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions) 12,000 50.0% 45.0% 7,000 30.0% 10,000 8,923 8,733 40.0% 8,000 7,750 8,209 35.0% 6,000 4,972 25.0% 30.0% 5,000 4,000 4,492 4,302 20.0% 6,000 25.0% 17.4% 16.6% 14.3% 4,000 15.0% 14.9% 13.4% 12
Slide 23: Financial Performance – 1Q 2024
Financial Performance –1Q 2024 DEC 2023 1Q 23 1Q 24 Trade Receivables Days 4.5 2.9 4.6 Inventory Days 61.6 73.3 67.3 Trade Payables Days 36.6 31.3 32.3 Cash Conversion Cycle 29.6 44.9 39.6 Notes: 1.Average of inventory at the beginning and end of the period / cost of sales x 363 (for full year)) 2.A
Slide 24: Sustainability Highlights 2023
Sustainability Highlights 2023 ECONOMIC CONTRIBUTION PHP 16.6M invested to PHP 5.22B taxes paid to PHP 4.5B employee community including the government wages and benefits LCCK 13,058 total no. of direct employees 0 incidents of corruption 24
Slide 25: Sustainability Highlights 2023
Sustainability Highlights 2023 ENVIRONMENT PERFORMANCE 20.1M Clean electricity produced 101M reduction of plastic bags used in Puregold stores compared to 2018 Solar Power rooftop in 26 S&R Warehouse Clubs, 1 S&R 54% of Puregold stores use paper bags Distribution Center, and 13 and promote monthly u
Slide 26: Sustainability Highlights 2023
Sustainability Highlights 2023 SOCIAL RESPONSIBILITY 994 scholars graduated, 0 legal actions or 57% female employees 137 passed licensure employee grievance on in the workforce exam, 260 current no. of forced and child labor scholars 827,000+ Puregold Sari-Sari Store members 1.9M Puregold Mobile (Su
Slide 27: Sustainability Highlights 2023
Sustainability Highlights 2023 27