Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — 9M 2019 Earnings Presentation
18 slides from Puregold Price Club's earnings presentation, November 2019
Slide 1: Company Presentation: 9M 2019 Results and Performance
Company Presentation 9M 2019 Results and Performance November 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 – 9M 2019 5
Slide 6: 9M 2019 Results and Performance
9M 2019 Results and Performance • Opened 17 new PGOLD stores; 1 S&R Warehouse in 9M 2019; closed 2 PGOLD store and 1 S&R QSR • Operating 423 stores in 9M 2019; with consolidated NSA of around 550,000 sqm • Consolidated net sales expanded by 10.3% in 9M 2019; Puregold stores sales accounted for about
Slide 7: Operating Performance – 9M 2019
Operating Performance – 9M 2019 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 23% Revenue contribution 77% Gross profit (PHP million) & Margin (%) 12,603 (14.8%) 5,618 (22.6%) Total traffic (million) 133 6.4 Average net ticket (PHP) 637 4,065 Net sales growth (%) 9.0% 15.6%
Slide 8: Operating Performance – 9M 2019
Operating Performance – 9M 2019 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) 800,000 486,722 518,862 537,965 550,843 Group 2016 2017 2018 9M 19700,000 Hypermarket 147 171 208 600,000 222 4,126 4,010 2,715 3,509 500,000 72,904 83,048 87,470 Supermarket 100 103 104 103 400,000
Slide 9: Store Portfolio – 9M 2019
Store Portfolio – 9M 2019 Key statistics 9M 2019 Geographic coverage Total no. of 423 BULACAN Caloocan stores North Luzon 222 hypermarkets; Valenzuela (104 stores) 103 supermarkets; Quezon City No. of stores 44 extras Navotas Malabon per format Caloocan 17 S&Rs Marikina Metro Manila 37 S&R Q
Slide 10: Financial Performance – 9M 2019
Financial Performance – 9M 2019 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 140.92 30 30.0 124.49 23.84 28.0 112.59 109.81 25 21.48 18.22 26.0 99.57 19.38 16.94 20 24.0 22.0 15 20.0 10 18.0 5 17.2% 17.3% 16.9% 17.0% 16.6% 16.0 14.0 0 12.0 2016 2017 2018 9M 18 9M 19 2016 2017
Slide 11: Financial Performance – 9M 2019
Financial Performance – 9M 2019 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 000 20,000 40.0% 14.0% 500 17,840 2,941 2,307 12.0% 15,516 35.0% 000 2,692 15,000 13,707 12,929 30.0% 500 2,429 2,108 10.0% 11,929 25.0% 000 8.0% 10,000 20.0% 500 6.0% 15.0% 000 2.2% 4.0% 2.
Slide 12: Financial Performance – 9M 2019
Financial Performance – 9M 2019 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 0 7,500 35.0% 25.0 0 8,652 8,941 6,520 8,097 7,600 6,500 30.0% 5,840 0 7,115 5,500 5,526 4,422 4,553 20.0 0 25.0% 0 4,500 20.0% 15.0 0 3,500 0 15.0% 2,500 10.0 0 7.2% 7.0% 6.3%
Slide 13: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 140 20,000 25 120 109.47 15,681 16,898 90.94 98.62 14,451 12,604 23 100 84.9 15,000 12,292 77.89 21 80 60 10,000 19 40 5,000 15.9% 15.9% 15.4% 15.8% 17 20 14.8% 15 0 - 13 2016 2017 2018 9M 18 9M
Slide 14: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 31.45 8,000 70.0% 6,942 5,618 25.87 24.9 7,000 5,795 60.0% 21.65 21.7 4,643 6,000 4,924 50.0% 5,000 4,000 40.0% 3,000 30.0% 2,000 22.7% 22.4% 22.1% 21.4% 22.6% 1,000 20.0% - 10.0% 2016 2017 2018 9M 1
Slide 15: Financial Performance – Working Capital Days
Financial Performance – 9M 2019 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2016 2017 2018 9M 19 Trade Receivables 6.0 7.0 7.6 5.1 Days Inventory Days 56.9 59.8 58.0 59.4 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 billion in 2019 – Php 1 billion for 25 new Puregold Stores – Php 3.2 billion for 4 S&R stores – Php 36 million for 2 S&R QSR – Php 800 million Maintenance Capex • To be funded by internally generated cash and short term untapped bank credit lines if
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 (4 to 6%) and S&R (6 to 7%) – Opening of 25 new Puregold stores – Opening of 2 S&R Warehouse stores & 1 S&R QSRs • Sus
Slide 18: Q&A Thank you!
Q&A Thank you! 18