Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — FY2017 Earnings Presentation
18 slides from Puregold Price Club's earnings presentation, April 2018
Slide 1: Puregold Price Club, Inc. Company Presentation FY 2017 Results and Performance
PUREGOLD PRICE CLUB, INC. Company Presentation FY 2017 Results and Performance April 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 – FY 2017 5
Slide 6: FY 2017 Results and Performance
FY 2017 Results and Performance • Opened 30 new PGOLD stores; 2 S&R Warehouse Club, 9 S&R New York Style Pizza (QSR) in FY 2017; closed 3 PGOLD stores; acquired & converted 5 B&W Supermarket • Operating 372 stores in FY 2017; with consolidated NSA of more than 518,000 sqm • Consolidated net sales ex
Slide 7: Operating Performance
Operating Performance – FY 2017 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 20.2% Revenue contribution 79.8% Gross profit (PHP million) & Margin (%) 15,050 (15.2%) 5,625 (21.7%) Total traffic (million) 167 7.2 Average net ticket (PHP) 577 3,679 Net sales growth (%) 8.4% 1
Slide 8: Operating Performance
Operating Performance – FY 2017 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) 404,914 426,559 486,722 518,862 Group 2014 2015 2016 2017 3,509 Hypermarket 121 134 147 171 2,715 1,720 62,037 72,904 Supermarket 83 93 100 103 44,046 50,963 Extra 29 28 30 35 360,868 373,876 421,970
Slide 9: Store Portfolio - FY 2017
Store Portfolio - FY 2017 Key statistics FY 2017 Geographic coverage Total no. of 372 BULACAN Caloocan stores 171 hypermarkets; North Luzon Valenzuela 103 supermarkets; (91 stores) Quezon City 35 extras Navotas Malabon No. of stores 14 S&Rs Caloocan Marikina per format Metro Manila 32 S&R QS
Slide 10: Financial Performance – FY 2017
Financial Performance – FY 2017 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 25 30.0% 124.49 20.65 28.0% 112.59 20 18.54 26.0% 97.17 16.49 14.8 24.0% 84.7 15 12.7 22.0% 73.2 20.0% 10 18.0% 5 17.4% 17.4% 17.0% 16.5% 16.6% 16.0% 14.0% 0 12.0% 2013 2014 2015 2016 2017 2013 2014 2
Slide 11: Financial Performance – FY 2017
Financial Performance – FY 2017 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 20,000 40.0% 00 3,513 15,516 00 3,266 14.0% 35.0% 00 2,886 12.0% 15,000 13,707 30.0% 2,563 10.0% 12,225 00 2,204 10,845 25.0% 00 8.0% 10,000 9,449 20.0% 00 6.0% 12.9% 12.8% 12.6% 12.2% 12.5%
Slide 12: Financial Performance – FY 2017
Financial Performance – FY 2017 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 7,000 25.0% 00 35.0% 8,652 5,840 00 8,097 6,000 30.0% 5,526 20.0% 00 5,000 5,002 7,150 25.0% 4,520 00 6,478 00 4,000 3,959 15.0% 5,454 20.0% 00 3,000 15.0% 10.0% 00 7.6% 5.4% 5.
Slide 13: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 90.94 98.62 20,000 25.0% 69.05 79.61 15,000 12,480 13,831 15,030 23.0% 60.99 9,725 11,108 21.0% 10,000 19.0% 15.9% 16.1% 15.7% 17.0% 5,000 15.2% 15.2% 15.0% - 13.0% 2013 2014 2015 2016 2017 2013
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 6,000 5,625 60.0% 21.65 5,000 4,708 17.82 3,652 4,008 50.0% 15.77 4,000 12.46 2,974 40.0% 3,000 23.9% 23.2% 30.0% 2,000 22.5% 21.7% 21.7% 1,000 20.0% - 10.0% 2013 2014 2015 2016 201
Slide 15: Financial Performance – Working Capital Days
Financial Performance – FY 2017 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2014 2015 2016 2017 Trade Receivables Days 5.3 5.7 6.0 7.0 Inventory Days 53.2 54.3 56.9 59.8 New Puregold Store roll out and new S&R Stores to be opened in 2017 Trade Pa
Slide 16: CAPEX Guidance for FY 2018
CAPEX Guidance for FY 2018 • CAPEX Budget of Php 3.7 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 50 million for 10 Lawsons Stores – Php 250 million IT System Upgrade – Php 700 million Maintenance Capex • To be f
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