Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — Q1 2018 Earnings Presentation
18 slides from Puregold Price Club's earnings presentation, May 2018
Slide 1: Company Presentation: 1Q 2018 Results and Performance
PUREGOLD PRICE CLUB, INC. Company Presentation 1Q 2018 Results and Performance May 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 – 1Q 2018 5
Slide 6: 1Q 2018 Results and Performance
1Q 2018 Results and Performance • Opened 10 new PGOLD stores; 1 S&R New York Style Pizza (QSR) in 1Q 2018 • Operating 383 stores in 1Q 2018; with consolidated NSA of more than 526,000 sqm • Consolidated net sales expanded by 12.2% in 1Q 2018; Puregold stores sales accounted for about 78% of consolid
Slide 7: Operating Performance – 1Q 2018
Operating Performance – 1Q 2018 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 22.1% Revenue contribution 77.9% Gross profit (PHP million) & Margin (%) 3,757 (15.6%) 1,405 (20.6%) Total traffic (million) 43 7.2 Average net ticket (PHP) 566 3,743 Net sales growth (%) 9.4% 23.
Slide 8: Operating Performance – 1Q 2018
Operating Performance – 1Q 2018 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) Group 2015 2016 2017 1Q 18 426,559 486,722 518,862 526,434 Hypermarket 134 147 171 195 2,715 3,509 3,727 1,720 62,037 72,904 72,904 Supermarket 93 100 103 105 50,963 Extra 28 30 35 36 S&R 10 12 14 14
Slide 9: Store Portfolio – 1Q 2018
Store Portfolio – 1Q 2018 Key statistics 1Q 2018 Geographic coverage Total no. of 383 BULACAN Caloocan stores North Luzon 195 hypermarkets; Valenzuela (92 stores) 105 supermarkets; Quezon City No. of stores 36 extras Navotas Malabon per format Caloocan 14 S&Rs Marikina Metro Manila 33 S&R QS
Slide 10: Financial Performance – 1Q 2018
Financial Performance – 1Q 2018 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 25 30.0% 124.49 20.65 112.59 28.0% 20 18.54 26.0% 97.17 16.49 24.0% 15 22.0% 20.0% 10 4.62 5.16 18.0% 27.53 30.88 5 17.0% 16.5% 16.6% 16.8% 16.7% 16.0% 14.0% 0 12.0% 2015 2016 2017 1Q 17 1Q 18 2015 20
Slide 11: Financial Performance – 1Q 2018
Financial Performance – 1Q 2018 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 20,000 40.0% 4,000 3,500 3,266 3,513 14.0% 15,516 35.0% 3,000 2,886 12.0% 15,000 13,707 30.0% 2,500 10.0% 12,225 25.0% 8.0% 10,000 20.0% 2,000 769 1,009 12.6% 1,500 6.0% 12.2% 12.5% 12.9% 13
Slide 12: Financial Performance – 1Q 2018
Financial Performance – 1Q 2018 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 10,000 35.0% 9,000 8,097 8,652 30.0% 8,000 7,000 25.0% 7,150 5,840 7,000 25.0% 6,000 5,526 20.0% 6,000 20.0% 5,000 5,002 5,000 15.0% 4,000 15.0% 4,000 1,852 2,064 3,000 1,275 1,
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 13,831 15,030 23.0% 15,000 12,480 21.0% 10,000 3,454 3,757 19.0% 21.98 24.05 5,000 15.7% 15.2% 15.2% 15.7% 15.6% 17.0% 15.0% - 13.0% 2015 2016 2017 1Q 17 1Q 18 201
Slide 14: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 7,000 70.0% 25.87 5,625 6,000 21.65 4,708 60.0% 17.82 5,000 4,008 50.0% 4,000 40.0% 3,000 1,405 6.83 1,169 30.0% 5.56 2,000 22.5% 21.7% 21.7% 21.0% 20.6% 1,000 20.0% - 10.0% 2015 2016 2017 1Q 17 1Q 1
Slide 15: Financial Performance – Working Capital Days
Financial Performance – 1Q 2018 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2015 2016 2017 1Q 18 Trade Receivables Days 5.7 6.0 7.0 6.2 New Puregold Store roll out and new S&R Inventory Days 54.3 56.9 59.8 65.0 Stores to be opened in 2018 Trade P
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 6 to 8% driven by the following: – Net sales growth from organic Puregold and S&R stores – Positive SSSG for Puregold (2 to 4%) and S&R (2 to 4%) – Opening of 25 new Puregold stores – Opening of 2 S&R Warehouse stores & 12 S&R QSRs – Con
Slide 18: Q&A Thank you!
Q&A Thank you! 18