Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — Q1 2023 Earnings Presentation
35 slides from Puregold Price Club's earnings presentation, May 2023
Slide 1: Puregold
> PUREGOLD
Slide 2: 1Q23 Results & Performance
1Q23 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: 1Q23 Results Highlight
1Q23 Results Highlight CONSO GROSS PROFIT EBITDA REVENUE MARGIN % MARGIN % NIAT 1Q23 Php 44.4 bn 19.2% 10.8% Php 2.4 bn YoY 15.2% -78 bps -107 bps 11.9%
Slide 8: Macro Highlights in 2023
Marco Highlights in 2023 SNAPSHOT : PHILIPPINES SNAPSHOT : THE WORLD • Resilient mid-C, D and E markets • Inflationary pressures linger • Sustained strength from A, B and upper C markets • Soft commodities & Brent oil may have peaked • Employment gains continue • Continued high geopolitical uncertai
Slide 9: 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 10: Store Portfolio 1Q23
Store Portfolio 1Q23 GEOGRAPHIC COVERAGE KEY STATS NEW PG + S&R STORES 2023 6 Doors Puregold Store VISAYAS Puregold Guadalupe, Cebu TOTAL NUMBER 531 VISAYAS Puregold Mango, Cebu S&R Warehouse OF STORES VISAYAS Puregold Canlaon, Negros Oriental N. Luzon 123 3 8 134 S&R QSR 290 hypermarkets EAST LUZON
Slide 11: Operating Performance 1Q23
Operating Performance 1Q23 REVENUE Gross Profit (PHP million) & Margin (%) 5,412 (18.1%) 3,109 (21.6%) CONTRIBUTION Total Traffic (Million) 32.4 2.8 Average Net Ticket (PHP) 928 4,951 32 Net Sales Growth (%) 12.3% 17.3% 68 % Traffic Growth (%) 12.7% 13.1% % Average Net Ticket Growth (%) -7.6% 3.7% S
Slide 12: Financial Performance
Financial Performance CONSO 1Q23 0 0 3YCAGR 4.5% 15.2% 3YCAGR 7.7% 10.7%
Slide 13: Financial Performance
Financial Performance CONSO 1Q23 3YCAGR 0.5% 7.8% 3YCAGR 4.1% 3.7%
Slide 14: Financial Performance
Financial Performance CONSO 1Q23 3YCAGR 3.9% 4.7% 3YCAGR 9.0% 15.2%
Slide 15: Financial Performance
Financial Performance CONSO 1Q23 3YCAGR 7.3% 11.9%
Slide 16: Financial Performance
Financial Performance NET SALES BREAKDOWN QTR NET SALES TREND In past 5 years, Best 1Q sales since 1Q20. Double-digit sales YoY for both banners. Categories related to reopening continued their momentum. All customer segments + yoy. 1Q23 YoY major contributors are higher traffic in PG stores, higher
Slide 17: Profitability
Profitability Series1 NET INCOME AFTER TAX Php2,406.2 1Q23 1Q22 CHANGE >>Higher product costs coupled with group- GPM wide pricing initiatives to gain market share GROSS PROFIT MARGIN 19.21% 19.99% -78bps tempered by effect of joint business plans with suppliers 11.85% >>Higher front-loaded OPEX due
Slide 18: Margins
OGPM OEBITDAM OEBITM ONM MARGIN TRENDS 9 9 19.2% 16.8% 17.3% 18.3% 18.4% 9.8% 10.5% 10.7% 10.3% 10.8% 7.4% 9% 7.9% 9% 8.1% 44% 48% 5.0% 5.0% 5.4% 2019 2020 2021 2022 1Q23
Slide 19: Pillars of Growth 2023
Pillars of Growth 2023 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 - “S
Slide 20: 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 21: 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 22: TNAP Sari-Sari Store Negosyo Convention 2023
TNAP Sari-Sari Store Negosyo Convention 2023
Slide 23: Q&A
1Q23 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation Q&A
Slide 24: Annex
1Q23 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation ANNEX
Slide 25: Financial Performance 1Q23 (Puregold only)
Financial Performance 1Q23 PUREGOLD ONLY 1Q23 3YCAGR 0.1% 12.3% 3YCAGR 4.4% 13.3%
Slide 26: Financial Performance 1Q23 (Puregold only)
Financial Performance 1Q23 PUREGOLD ONLY 1Q23 3YCAGR 1.1% 14.1% 3YCAGR 10.6% 41.0%
Slide 27: Financial Performance 1Q23 (S&R only)
Financial Performance 1Q23 S&R ONLY 1Q23 GROSS PROFIT & MARGIN (in PHP Millions) 13,642 15,000 30.0% 11,607 10,628 28.0% 11,250 26.0% 7,500 24.7% 24.0% 3,750 23.8% 23.7% 2,922 3,109 22.7% 21.6% 22.0% '- 20.0% 2020 2021 2022 1Q22 1Q23 GP GP Margin 3YCAGR 16.0% 21.7% 3YCAGR 13.3% 6.4%
Slide 28: Financial Performance 1Q23 (S&R only)
Financial Performance 1Q23 S&R ONLY 1Q23 3YCAGR 7.3% -7.2% 3YCAGR 11.4% -17.7%
Slide 29: Financial Performance
Financial Performance MARCH 2023 MARCH 2022 DEC 2022 Trade Receivables Days 2.9 2.9 3.6 Inventory Days 73.3 66.2 60.0 Trade Payables Days 31.3 22.8 30.9 Cash Conversion Cycle 44.9 46.2 32.8 Notes: 1.Average of inventory at the beginning and end of the period / cost of sales x 363 (for full year)) 2.
Slide 30: Financial Performance
Financial Performance PHP (in Thousands) Q1 2023 % Q1 2022 % Change % Net Sales P44,352,437 100.0% P38,507,339 100.0% P5,845,098 15.2% Gross Profit 8,520,591 19.2% 7,698,223 20.0% 822,368 10.7% Other Operating Income 762,048 1.7% 706,676 1.8% 55,372 7.8% Operating Expenses 5,705,152 12.9% 4,953,670
Slide 31: 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 32: Sustainability Highlights 2022
Sustainability Highlights 2022 ENVIRONMENT PERFORMANCE 101M reduction of plastic bags used in Puregold 3% Clean electricity used 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 33: 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 34: Sustainability Highlights 2022
Sustainability Highlights 2022
Slide 35: Nasa Iyo Ang Panalo
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