Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — FY2018 Earnings Presentation
18 slides from Puregold Price Club's earnings presentation, April 2019
Slide 1: Company Presentation: FY 2018 Results and Performance
Company Presentation FY 2018 Results and Performance April 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 – FY 2018 5
Slide 6: FY 2018 Results and Performance
FY 2018 Results and Performance • Opened 30 new PGOLD stores; 2 S&R Warehouse and 7 S&R New York Style Pizza (QSR) and closed down 2 Puregold Stores in FY 2018 • Operating 409 stores in FY 2018; with consolidated NSA of more than 538,000 sqm • Consolidated net sales expanded by 13.2% in 2018; Purego
Slide 7: Operating Performance
Operating Performance – FY 2018 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 22% Revenue contribution 78% Gross profit (PHP million) & Margin (%) 16,898 (15.4%) 6,942 (22.1%) Total traffic (million) 179 8.2 Average net ticket (PHP) 612 3,959 Net sales growth (%) 11.0 23.2%
Slide 8: Operating Performance
Operating Performance – FY 2018 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) Group 2016 2017 2018 486,722 518,862 542,459 Hypermarket 147 171 208 2,715 3,509 4,126 62,037 72,904 83,048 Supermarket 100 103 104 Extra 30 35 42 442,449 450,791 421,970 S&R 12 14 16 S&R QSR 23 32 3
Slide 9: Store Portfolio
Store Portfolio – FY 2018 Key statistics 9M 2018 Geographic coverage Total no. of 409 BULACAN Caloocan stores North Luzon 208 hypermarkets; Valenzuela (99 stores) 104 supermarkets; Quezon City No. of stores 42 extras Navotas Malabon per format Caloocan 16 S&Rs Marikina Metro Manila 39 S&R QS
Slide 10: Financial Performance
Financial Performance – FY 2018 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 18.0 5 17.2% 17.3% 16.9% 16.0 14.0 0 12.0 2016 2017 2018 2016 2017 2018 Gross Profit GP Margin • Continuing strong r
Slide 11: Financial Performance
Financial Performance – FY 2018 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 4,000 14.0% 20,000 40.0% 3,500 17,840 3,000 2,692 2,941 12.0% 15,516 2,500 2,429 15,000 10.0% 13,707 30.0% 2,000 8.0% 10,000 20.0% 1,500 6.0% 4.0% 1,000 2.2% 2.2% 2.1% 5,000 12.2% 12.5% 12.7
Slide 12: Financial Performance
Financial Performance – FY 2018 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 7,500 25.0% 9,500 35.0% 30.0% 7,000 9,000 8,941 20.0% 8,652 25.0% 6,500 6,520 8,500 15.0% 20.0% 8,097 6,000 5,840 15.0% 8,000 5,500 5,526 10.0% 7.2% 7.0% 6.3% 10.0% 4.9% 4.7% 7,
Slide 13: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 109.47 20,000 25.0% 98.62 14,451 15,681 16,898 23.0% 90.94 15,000 21.0% 10,000 19.0% 5,000 15.9% 15.9% 15.4% 17.0% 15.0% - 13.0% 2016 2017 2018 2016 GP 2017 GP Margin 2018 EBITDA and Margin (in
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% 25.87 5,795 6,942 21.65 6,000 4,924 50.0% 4,000 30.0% 2,000 22.7% 22.4% 22.1% - 10.0% 2016 2017 2018 2016 2017 2018 GP GP Margin EBITDA and Margin (in PHP millions) Net Profit & Mar
Slide 15: Financial Performance: Working Capital Days
Financial Performance – FY 2018 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2015 2016 2017 2018 Trade Receivables Days 5.7 6.0 7.0 7.6 Inventory Days 54.3 56.9 59.8 58.0 New Puregold Store roll out and new S&R Stores to be opened in 2018 Trade Pa
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 200 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