Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — Q1 2019 Earnings Presentation
18 slides from Puregold Price Club's earnings presentation, May 2019
Slide 1: Company Presentation: 1Q 2019 Results and Performance
Company Presentation 1Q 2019 Results and Performance May 2019
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 2018
Store roll-out through FY 2018 409 360 329 298 215 102 64 1 3 16 30 1998 2001 2006 2008 2010 2011 2013 2015 2016 2017 2018 First store Expansion Brand recognition Market leadership Rapid expansion via organic Continuing new stores roll- Opened in Launched loyalty Reader’s Digest The 2nd larg
Slide 5: Update on Puregold
Update on Puregold – 1Q 2019 5
Slide 6: 1Q 2019 Results and Performance
1Q 2019 Results and Performance • Opened 8 new PGOLD stores; 1 S&R Warehouse in 1Q 2019 • Operating 417 stores in 1Q 2019; with consolidated NSA of more than 550,000 sqm • Consolidated net sales expanded by 12.8% in 1Q 2019; Puregold stores sales accounted for about 76% of consolidated net sales • G
Slide 7: Operating Performance
Operating Performance – 1Q 2019 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 24% Revenue contribution 76% Gross profit (PHP million) & Margin (%) 4,367 (16.4%) 1,698 (20.8%) Total traffic (million) 44 2.1 Average net ticket (PHP) 609 3,960 Net sales growth (%) 10.8% 21.4%
Slide 8: Operating Performance
Operating Performance – 1Q 2019 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) 486,722 518,862 537,965 550,144 Group 2016 2017 2018 1Q 19 4,126 4,126 Hypermarket 147 171 208 216 2,715 3,509 72,904 83,048 87,470 62,037 Supermarket 100 103 104 104 Extra 30 35 42 42 458,548 421,97
Slide 9: Store Portfolio
Store Portfolio – 1Q 2019 Key statistics 1Q 2019 Geographic coverage Total no. of 417 BULACAN Caloocan stores North Luzon 216 hypermarkets; Valenzuela (104 stores) 104 supermarkets; Quezon City No. of stores 42 extras Navotas Malabon per format Caloocan 17 S&Rs Marikina Metro Manila 38 S&R Q
Slide 10: Financial Performance
Financial Performance – 1Q 2019 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 30 30.0% 140.92 23.84 28.0% 124.49 25 21.48 112.59 19.38 26.0% 20 24.0% 22.0% 15 20.0% 10 5.46 6.06 18.0% 30.87 34.83 17.7% 17.4% 16.0% 5 17.2% 17.3% 16.9% 14.0% 0 12.0% 2016 2017 2018 1Q 18 1Q 19 201
Slide 11: Financial Performance
Financial Performance – 1Q 2019 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 20,000 40.0% 000 15.0% 15,516 17,840 2,941 15,000 13,707 30.0% 000 2,429 2,692 10.0% 10,000 20.0% 000 673 729 5.0% 3,772 4,223 10.0% 000 2.2% 2.2% 2.1% 2.2% 2.1% 5,000 12.2% 12.5% 12.7% - 0.
Slide 12: Financial Performance
Financial Performance – 1Q 2019 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 000 35.0% 8,652 8,941 7,500 25.0% 8,097 30.0% 6,520 5,526 5,840 000 6,500 25.0% 20.0% 5,500 000 20.0% 4,500 15.0% 000 2,356 2,571 3,500 15.0% 7.0% 2,500 1,349 1,510 10.0% 7.2% 6
Slide 13: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 140 120 109.47 20,000 25.0% 98.62 100 90.94 14,451 15,681 16,898 23.0% 15,000 80 21.0% 60 10,000 4,061 4,367 19.0% 40 24.05 26.66 15.9% 15.9% 15.4% 16.9% 16.4% 17.0% 5,000 20 15.0% 0 - 13.0% 201
Slide 14: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 8,000 70.0% 31.45 7,000 6,942 25.87 5,795 60.0% 21.65 6,000 4,924 50.0% 5,000 4,000 40.0% 3,000 1,395 1,698 6.82 8.17 22.7% 22.4% 30.0% 2,000 22.1% 20.5% 20.8% 20.0% 1,000 - 10.0% 2016 2017 2018 1Q 1
Slide 15: Financial Performance: Working Capital Days
Financial Performance – 1Q 2019 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2016 2017 2018 1Q 19 Trade Receivables 6.0 7.0 7.6 7.1 Days Inventory Days 56.9 59.8 58.0 62.5 New Puregold Store roll out and new S&R Stores to be opened in 2019 Trade P
Slide 16: CAPEX Guidance for FY 2019
CAPEX Guidance for FY 2019 • CAPEX Budget of Php 5.2 billion in 2019 – Php 1 billion for 25 new Puregold Stores – Php 3.2 billion for 4 S&R stores – Php 180 million for 10 S&R QSR – Php 800 million Maintenance Capex • To be funded by internally generated cash and short term untapped bank credit line
Slide 17: Guidance for 2019
Guidance for 2019 • Consolidated net sales targeted to grow by 8 to 10% driven by the following: – Net sales growth from organic Puregold and S&R stores – Positive SSSG for Puregold (3 to 5%) and S&R (3 to 5%) – Opening of 25 new Puregold stores – Opening of 4 S&R Warehouse stores & 10 S&R QSRs • Su
Slide 18: Q&A Thank you!
Q&A Thank you! 18