Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — FY2022 Earnings Presentation
42 slides from Puregold Price Club's earnings presentation, 2023
Slide 1: Puregold
> PUREGOLD
Slide 2: FY22 Results & Performance
FY22 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation 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: 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 • Membership shopping model • Catering to the upper income customers • Class A & B and upper C segment • Imported and la
Slide 5: 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 6: Most Chosen Retailer 2022, Kantar
Most Chosen Retailer 2022, Kantar Puregold recently ranked No. 1 in the Philippines as In addition, Puregold’s impact to consumers was also driven Kantar’s Most Chosen Retailer. upward by its accessibility. With over 445 stores nationwide and increasing footprint in the provinces, Puregold squarely
Slide 7: Sustained Topline Growth In and Out of Pandemic
Sustained Topline Growth In and Out of Pandemic PGOLD GDP
Slide 8: Shareholder Distribution
Shareholder Distribution YEAR EPS DIV 2016 2 0.4 2017 1.99 0.4 2018 2.24 0.4 2019 2.37 0.45 2020 2.81 0.5 2021 2.85 0.86* 2022 3.24 5YCAGR 10% 17% YoY 14% 72% EPS DIV *Announced a new dividend policy of at least 30% of income of the previous year
Slide 9: FY22 Results Highlight
FY22 Results Highlight CONSO GROSS PROFIT EBITDA REVENUE MARGIN % MARGIN % NIAT FY22 Php 184.3 bn 18.4% 10.3% Php 9.3 bn YoY 12.3% +2 bps -38 bps 13.5%
Slide 10: Macro Highlights in 2022-2023
Marco Highlights in 2022-2023 SNAPSHOT : PHILIPPINES SNAPSHOT : THE WORLD • Elevated inflationary pressures • Resilient mid-C, D and E markets • Soft commodities & Brent oil may have peaked • Sustained strength from A, B and upper C markets • Continued high geopolitical uncertainties • Employment ga
Slide 11: Shopper Trends 2023
Shopper Trends 2023 Timely and complete fulfillment More “in-person” Emphasis on value Preference for impactful promotions Strength of traditional channels
Slide 12: Store Portfolio FY22
Store Portfolio FY22 GEOGRAPHIC COVERAGE KEY STATS NEW PUREGOLD STORES 2022 24 Doors Puregold Store METRO MANILA Puregold Nitang TOTAL NUMBER METRO MANILA Puregold Champaca 525 S&R Warehouse OF STORES METRO MANILA Puregold 999 Caloocan N. Luzon METRO MANILA Puregold Camarin 122 3 8 133 S&R QSR 285 h
Slide 13: Operating Performance FY22
Operating Performance FY22 REVENUE Gross Profit (PHP million) & Margin (%) 20,178 (16.2%) 13,642 (22.7%) CONTRIBUTION Total Traffic (Million) 125.8 11.7 Average Net Ticket (PHP) 988 5,141 33 Net Sales Growth (%) 8.0% 15.6% 67 % Traffic Growth (%) 13.2% 7.6% % Average Net Ticket Growth (%) -4.7% 7.4%
Slide 14: Financial Performance
Financial Performance CONSO FY22 3YCAGR 4.5% 12.3% 3YCAGR 7.7% 12.4%
Slide 15: Financial Performance
Financial Performance CONSO FY22 3YCAGR 0.5% -0.8% 3YCAGR 4.1% 11.9%
Slide 16: Financial Performance
Financial Performance CONSO FY22 3YCAGR 3.9% 8.3% 3YCAGR 9.0% 10.7%
Slide 17: Financial Performance
Financial Performance CONSO FY22 3YCAGR 7.3% 13.5%
Slide 18: Financial Performance: Net Sales Breakdown
Financial Performance NET SALES BREAKDOWN QTR NET SALES TREND Record-breaking sales in 2022. No bulk sales in ‘22 from gov’t targeted relief programs (unlike in ’20 & ’21). Less new store openings in 2022 vs 2021. Acceleration in 4Q due to holiday spend and 100% face-to-face classes. Numerous holida
Slide 19: Profitability
Profitability NET INCOME AFTER TAX Series1 FY22 FY21 CHANGE Php9,287.4 >>Continuing supplier support generated by GPM numerous in-store events; Higher costs GROSS PROFIT MARGIN 18.35% 18.33% +2bps upon inventory replenishment.; >>Pricing in line with group-wide market share growth initiatives. 13.54
Slide 20: Pillars of Growth '22-'23
Pillars of Growth ’22-‘23 01 04 Store Expansion Increase Demand Robust End-to-End Shopper Count Creation Supply Chain • “Just in Case” vs. “Just in • +15% increase pace in • Increase high potential • Reboot of marketing Puregold-only stores events Time’ shoppers • more provincial areas • ECommerce -
Slide 21: CAPEX for FY 2022
CAPEX for FY 2022 BUDGET ACTUAL BALANCE (in PH billions) (in PH billions) (in PH billions) CAPEX Budget of Php 5.8 billion in 2022 Php 2 billion for 35 new Puregold Stores 2.000 0.835 1.165 Php 2.8 billion for 3 S&R stores + 5 S&R QSR 2.800 1.506 1.294 Php 1 billion for maintenance capex, solar proj
Slide 22: CAPEX Guidance for FY 2023
CAPEX Guidance for FY 2023 CAPEX Budget of Php 11.9 billion in 2023 Php 2.3 billion for 30 new Puregold Stores Php 4.1 billion for 4 S&R WHs and 10 S&R QSRs Php 3.5 billion for logistics capex Php 2.0 billion for maintenance capex, solar projects and IT upgrades
Slide 23: Management Guidance 2023
Management Guidance 2023 Consolidated Revenue Growth 7% to 8% target Gross Profit Margin Puregold Stores: 15% target S&R WH: 20.5% to 21% target
Slide 24: Sustainability Highlights 2022
Sustainability Highlights 2022 ECONOMIC CONTRIBUTION PHP 4.98B taxes paid to the PHP 3.14B employee wages PHP 202.1M invested to government and benefits community including LCCK 12,038 total no. of direct 0 incidents of corruption employees
Slide 25: Sustainability Highlights 2022
Sustainability Highlights 2022 ENVIRONMENT PERFORMANCE 3% Clean electricity used 101M reduction of plastic bags used in Puregold stores compared to 2018 Rooftop Solar Power in 22 S&R 63% of Puregold stores use paper bags and Warehouse Clubs, 1 S&R Distribution promote monthly upsizing to reduce sing
Slide 26: Sustainability Highlights 2022
Sustainability Highlights 2022 SOCIAL RESPONSIBILITY 866 scholars graduated, 107 0 legal actions or 56% female employees in passed licensure exam, 312 employee grievance on the workforce current no. of scholars forced and child labor 760,000+ Puregold Sari-Sari 1.43M Puregold Mobile app Store member
Slide 27: Q&A
FY22 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation Q&A
Slide 28: Annex
FY22 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation ANNEX
Slide 29: Financial Performance FY22: Puregold Only
Financial Performance FY22 PUREGOLD ONLY FY22 3YCAGR 0.1% 8.0% 3YCAGR 4.4% 9.2%
Slide 30: Financial Performance FY22: Puregold Only
Financial Performance FY22 PUREGOLD ONLY FY22 3YCAGR 1.1% 7.2% 3YCAGR 10.6% 34.6%
Slide 31: Financial Performance FY22: S&R Only
Financial Performance FY22 S&R ONLY FY22 3YCAGR 16.0% 22.4% 3YCAGR 13.3% 17.5%
Slide 32: Financial Performance FY22: S&R Only
Financial Performance FY22 S&R ONLY FY22 3YCAGR 7.3% 8.7% 3YCAGR 11.4% 10.6%
Slide 33: Margins
Margins MARGIN TRENDS 18.3% 18.4% 16.8% 17.3% GPM EBITDAM 10.5% 10.7% 10.3% 9.8% EBITM NM 7.4% 7.9% 7.9% 7.9% 4.8% 5.0% 5.0% 4.4% 2019 2020 2021 2022
Slide 34: Financial Performance
Financial Performance AUDITED 2022 AUDITED 2021 Trade Receivables Days 3.6 3.3 60.0 57.5 Elevated inventory days to Inventory Days ensure availability Favorable payment terms to Trade Payables Days 30.9 24.8 suppliers to get bigger allocation and avail of discounts Cash Conversion Cycle 32.8 36.1 No
Slide 35: Financial Performance
Financial Performance PHP (in Thousands) Audited 2022 % Audited 2021 % Change % Net Sales ₱184,302,945 100.0% ₱164,124,835 100.0% ₱20,178,109 12.3% Gross Profit 33,819,672 18.4% 30,082,768 18.3% 3,736,904 12.4% Other Operating Income 3,183,788 1.7% 3,209,751 2.0% (25,963) -0.8% Operating Expenses 22
Slide 36: Social Media & Retailtainment
Social Media & Retailtainment Retailtainment Puregold pioneers retailtainment by maximizing social media as a way of connecting and interacting where consumers are; in or outside Puregold stores. Digital Foot Print 3.1M Followers 202K Followers 171K Subscribers 33K Followers Puregold Channel Combini
Slide 37: Puregold TikTok Shop
Puregold TikTok Shop 1st PH retailer to open a TikTok shop “Building engaging consumer experiences that make shopping exciting and entertaining has become increasingly important in building authentic 2000 organic views connections, and we are excited to see Puregold grow LIVE SELLING SHOWS their com
Slide 38: 25th Anniversary Campaign
25th Anniversary Campaign Nasa Iyo Ang Panalo Campaign In it’s twenty-fifth year in the retail industry, Puregold has one important goal: to highlight life ‘Panalo Stories’ of its customers— Filipinos across the country. Puregold begins by telling the tales of triumph of six sought-after personaliti
Slide 39: In-store Brand Refresh
In-store Brand Refresh Modern & dynamic Visuals Communicate value for money by Proudly local highlighting partner brands, categories, promos
Slide 40: Walastik Grocery Day
Walastik Grocery Day Barely a month after Puregold launched its “No Plastic Use” days in its NCR stores, more than 110,000 single-use plastic bags were saved. Due to the public’s positive response, Puregold expands its sustainability efforts as it rolls out “No Plastic Use” days , twice a week, in a
Slide 41: Sustainability Highlights 2022
Sustainability Highlights 2022
Slide 42: LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA
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 ANG PANALO N