Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — 9M22 Earnings Presentation
43 slides from Puregold Price Club's earnings presentation, November 2022
Slide 1: Puregold
E> PUREGOLD
Slide 2: 9M22 Results & Performance
9M22 Results & Performance PUREGOLD PRICE CLUB, INC. Company Presentation November 2022
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: PGOLD Sales Sustained above 2019 Level throughout Pandemic
PGOLD Sales Sustained above 2019 level throughout Pandemic PGOLD GDP 22,000,000 200,000 180,000 21,000,000 160,000 140,000 20,000,000 120,000 19,000,000 100,000 80,000 18,000,000 60,000 40,000 17,000,000 20,000 16,000,000 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022
Slide 7: Shopper Trends 2022
Shopper Trends 2022 Pre-pandemic Increasing foot traffic key categories rebound (work & school) Sari-sari Stores are thriving Pantry stocking normalizing Importance of AFFORDABILITY
Slide 8: 9M22 Results Highlights
9M22 Results Highlights CONSO GROSS PROFIT EBITDA NIAT REVENUE MARGIN % MARGIN % 9M22 Php 127.6 bn 18.79% 10.73% Php 6.5 bn PUREGOLD S&R YoY+5.6% 10.7% +23.6% +14 bps -13 bps 12.9%
Slide 9: Macro Highlights In 2022
Macro Highlights In 2022 SNAPSHOT : PHILIPPINES SNAPSHOT : GLOBAL • Resilient mid-C, D and E markets • Sustained strength from A, B and upper C markets • Persistent elevated inflationary pressures • Employment gains continue • Soft commodities & Brent oil may have peaked • Persistent elevated inflat
Slide 10: Store Portfolio 9M22
Store Portfolio 9M22 GEOGRAPHIC COVERAGE KEY STATS NEW PG STORES 9M22 Puregold Stores TOTAL NUMBER 513 S&R Warehouse OF STORES 15 New Stores N. Luzon 130 S&R QSR 277 hypermarkets METRO MANILA Puregold Nitang 121 3 6 99 supermarkets METRO MANILA Puregold Champaca NO. OF STORES 67 extras NORTH LUZON P
Slide 11: Operating Performance 9M22
Operating Performance 9M22 REVENUE Gross Profit (PHP million) & Margin (%) 14,487 (16.5%) 9,478 (23.7%) CONTRIBUTION Total Traffic (Million) 91.3 8.1 Average Net Ticket (PHP) 959 4,916 31% Net Sales Growth (%) 5.6% 15.7% Traffic Growth (%) 12.9% 6.8% 69% Average Net Ticket Growth (%) -6.4% 8.3% Same
Slide 12: Financial Performance 9M22
Financial Performance 9M22 CONSO 9M22 NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 29.16 30.08 168.63 164.12 154.49 25.95 23.97 127.56 21.49 115.24 18.7% 18.8% 18.3% 16.8% 17.3% 2019 2020 2021 9M21 9M22 2019 2020 2021 9M21 9M22 Gross Profit GP Margin 3YCAGR 3.1% 10.7% 3YCAGR 7
Slide 13: Financial Performance 9M22
Financial Performance 9M22 CONSO 9M22 EBITDA & MARGIN (in PHP Millions) OPERATING EXPENSES (in PHP Millions) 20,350 17,680 17,614 18,953 17,830 15,204 15,923 13,687 14,756 12,512 11.5% 11.2% 12.4% 12.8% 12.5% 10.5% 10.7% 10.9% 10.7% 9.8% 2019 2020 2021 9M21 9M22 2019 2020 2021 9M21 9M22 EBITDA EBITD
Slide 14: Financial Performance 9M22
Financial Performance 9M22 CONSO 9M22 OTHER OPERATING INCOME OPERATING INCOME/EBIT & MARGINS (in PHP Millions) (in PHP Millions) 3,263 3,210 13,358 3,155 12,942 11,384 10,286 2,325 2,243 9,064 7.9% 7.9% 7.9% 8.1% 7.4% 2.1% 1.9% 2.0% 2.0% 1.8% 2019 2020 2021 9M21 9M22 2019 2020 2021 9M21 9M22 Other O
Slide 15: Financial Performance 9M22
Financial Performance 9M22 CONSO 9M22 NET INCOME & MARGINS (in PHP Millions) Net Income NI Margin 0.1 8,067 8,180 0.09 6,773 6,474 0.08 5,735 0.07 0.06 5.0% 5.0% 5.1% 4.8% 4.4% 0.05 0.04 2019 2020 2021 9M21 9M22 3YCAGR 9.9% 12.9%
Slide 16: Net Sales Breakdown
Net Sales Breakdown NET SALES BREAKDOWN QTR NET SALES TREND In PHP Billions In PHP Billions 10.7% 50 Puregold S&R 5.6% 87.6 2019 44 82.9 2020 2021 38 23.6% 2022 32.4 40.0 32 9M21 9M22 Q1 Q2 Q3 Q4 Quarterly Sales have always been maintained above 2019 levels. 9M22 a departure from the trend of the pr
Slide 17: Profitability
Profitability 9M21 9M22 CHANGE NET INCOME AFTER TAX In PHP Millions Continuing supplier GPM support generated by Php6,473.5 GROSS PROFIT MARGIN 18.65% 18.79% +14bps numerous in-store events. Higher costs upon inventory replenishment. Slightly higher cash opex 13% EBITDAM 10.86% 10.73% -13bps due to
Slide 18: 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 • +15% increase pace in • “Just in Case” vs. “Just in • Reboot of marketing Puregold-only stores • Increase high potential events Time’ • more provincial areas shoppers - TNAP Conven
Slide 19: 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. Puregold Channel Combining content with modern retailing gives Puregold more opportunities for branded m
Slide 20: 25th Year Anniversary
25th Year Anniversary 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 personalities i
Slide 21: Walastik Grocery Day
Walastik Grocery Day Puregold brings sustainability to the forefront through its ‘Walang Plastik Grocery Day’ campaign. In a nationwide scale, Puregold Perks and Tindahan ni Aling Puring members can enjoy up to P5 worth of cash rebates for every eco bag used in place of plastic bags. During it’s fir
Slide 22: Management Guidance 2022
Management Guidance 2022 Consolidated Revenue Growth 7% to 9% target Gross Profit Margin Puregold Stores: 15% to 16% target S&R WH: 22% to 22.50% target
Slide 23: Q&A
Q&A
Slide 24: Thank You!
THANK YOU! | |
Slide 25: Annex
PUREGOLD PRICE CLUB, INC. Company Presentation Annex
Slide 26: Financial Performance 9M22 - Puregold Only
Financial Performance 9M22 PUREGOLD ONLY 9M22 NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Millions) 25,000 25.0% 124.03 118.24 115.14 17,659 18,528 18,476 18,750 21.8% 87.56 14,487 82.88 13,561 12,500 18.5% 6,250 16.0% 16.4% 16.5% 15.3% 14.9% 14.9% '- 12.0% 2019 2020 2021 9M21 9M22 201
Slide 27: Financial Performance 9M22 - Puregold Only
Financial Performance 9M22 PUREGOLD ONLY 9M22 EBITDA & MARGIN (in PHP Millions) NIAT & MARGIN (in PHP Millions) 9,930 9,281 9,471 4,542 0.16 4,330 0.048 4,130 7,457 0.043 6,968 0.12 3.6% 3,063 2,782 0.038 3.7% 3.7% 0.033 7.8% 8.0% 8.2% 8.4% 8.5% 3.4% 3.5% 0.08 0.028 0.023 0.04 0.018 2019 2020 2021 9
Slide 28: Financial Performance 9M22 - S&R Only
Financial Performance 9M22 S&R ONLY 9M22 NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Millions) 15,000 0.3 49.04 11,607 44.61 10,628 0.28 11,250 40. 9,478 36.32 8,291 32.36 7,934 0.26 7,500 0.24 23.8% 24.5% 3,750 23.7% 23.7% 22.8% 0.22 '- 0.2 2019 2020 2021 9M21 9M22 2019 2020 2021 9M21
Slide 29: Financial Performance 9M22 - S&R Only
Financial Performance 9M22 S&R ONLY 9M22 EBITDA & MARGIN (in PHP Millions) NIAT & MARGIN (in PHP Millions) 0.15 4,492 8,209 4,000 7,750 0.22 3,411 5,922 6,230 2,917 2,952 5,544 17.4% 17.1% 9.2% 16.6% 9.0% 9.1% 0.1 16.3% 8.5% 8.0% 0.17 15.6% 0.12 0.05 2019 2020 2021 9M21 9M22 2019 2020 2021 9M21 9M22
Slide 30: 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
Slide 31: Margins
Margins MARGIN TRENDS 18.3% 18.8% 16.8% 17.3% GPM 10.5% 10.7% 10.7% 9.8% EBITDAM 8.1% 7.4% 7.9% 7.9% EBITM 4.8% 5.0% 5.1% 4.4% NM 2019 2020 2021 9M22
Slide 32: Financial Performance 9M22
Financial Performance 9M22 2021 9M21 9M22 Trade Receivables Days 3.3 2.7 2.2 Inventory Days 57.5 65.4 69.0 Elevated inventory days to ensure availability Favorable payment terms to Trade Payables Days 24.8 20.1 19.2 suppliers to get bigger allocation and avail of discounts Cash Conversion Cycle 36.1
Slide 33: Financial Performance
Financial Performance PHP (in Thousands) 9M22 9M21 CHANGE Net Sales ₱127,563,359 ₱115,241,028 ₱12,322,331 Gross Profit 23,965,594 21,494,447 2,471,147 Other Operating Income 2,243,010 2,325,329 (82,320) Operating Expenses 15,922,961 14,756,077 1,166,885 Others-net (1,758,116) (1,778,838) 20,723 Inco
Slide 34: Financial Position
Financial Position PHP (in Thousands) SEPT 2022 SEPT 2021 DEC 2021 Current Assets ₱65,413,082 ₱58,142,722 ₱65,930,709 Noncurrent Assets 76,741,144 72,884,339 73,503,099 Total Assets ₱142,154,225 ₱131,027,061 ₱139,433,807 Current Liabilities ₱11,387,254 ₱10,178,233 ₱17,184,815 Noncurrent Liabilities
Slide 35: Cash Flows
Cash Flows PHP (in Thousands) SEPT 2022 SEPT 2021 Income before tax ₱8,527,526 ₱7,284,862 Noncash operating items 5,163,288 5,223,716 Operating income before changes in working capital 13,690,814 12,508,578 Increase in merchandise inventory (9,843,249) (3,609,251) Decrease (increase) in other operat
Slide 36: Cash Flows
Cash Flows PHP (in Thousands) SEPT 2022 SEPT 2021 Additions to property and equipment (P 2,596,763) (P 2,630,781) Decrease (increase) in other investing activities (4,965,360) (2,411,574) Net cash provided by (used in) investing activities (₱7,562,123) (₱219,207) Payment of long-term loans (120,000)
Slide 37: TNAP Negosyo Convention 2022
TNAP Negosyo Convention 2022
Slide 38: Out of Store Chassis
Out of Store Chassis uregold APARs uregold Rolling Stores uregold Caravan
Slide 39: e-Commerce
e-Commerce Experience Pure Shopping Power with Puregold Mobile app! Major Services: In-store Pick up / Delivery / Express Delivery (2-hour) / P-Wallet / Bills Pay / Buy Load / Pure Treats (vouchers) / Donation Drive App Features: Sally’s Chatbot / Suggested Items / Inbox Message / PERKS & TNAP Point
Slide 40: Sustainability Highlights
Sustainability Highlights ENVIRONMENTAL PERFORMANCE Monthly upsizing through regular promotions Gearing towards 100% LED main lighting to reduce single-use packaging Migration to cross-docking operations to Almost 50% of total Puregold stores have help reduce CO2 emission by up to 36% discontinued t
Slide 41: Sustainability Highlights
Sustainability Highlights ECONOMIC CONTRIBUTION 11,647 total no. of direct employees PHP 4.25B taxes paid to the government >95% local hiring PHP 10.7M invested to scholarship and PHP 3B employee wages and benefits community development 97% of Cosco economic value generated 0 incidents of corruption
Slide 42: Sustainability Highlights
Sustainability Highlights SOCIAL RESPONSIBILITY 753 scholars graduated, 107 passed licensure 612 employees in Puregold and S&R promoted exam, 381 current no. of scholars 4,325 employees attended technical and 238 employees from indigenous communities behavioral skills training and vulnerable sector
Slide 43: Puregold
E> PUREGOLD