Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — 9M 2021 Earnings Presentation
23 slides from Puregold Price Club's earnings presentation, November 2021
Slide 1: 9M 2021 Results and Performance
Company Presentation 9M 2021 Results and Performance November 2021
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: Puregold Enterprise
Puregold Enterprise S&R • Membership shopping model • Class A & B and upper C segment • Imported and large size SKUs Puregold • Lower C, D and E market • Sari sari store customers/resellers • Popular local and small sized SKUs 3
Slide 4: Store roll-out through FY 2020
Store roll-out through FY 2020 More than 4x growth in store count since 2011 469 436 408 360 298 215 102 64 16 30 1 3 1998 2001 2006 2008 2010 2011 2013 2015 2017 2018 2019 2020 More than 4x growth in Revenues since 2011 168.63 154.49 141.14 124.7 112.59 97.17 84.7 73.2 57.5 39 2011 2012 2013 2014 2
Slide 5: 5 Pillars of Growth in 2020 - 21
5 Pillars of Growth in 2020 - 21 1. Protect our Supply Chain - Healthy Inventory levels despite supply chain disruptions (65 days) 2. Improve Logistics end-to-end - Last mile capability is 92% order fulfillment next day delivery - Serving more than 200k sari-sari store nationwide - Good relationship
Slide 6: Puregold Digital Innovations
Puregold Digital Innovations 6
Slide 7: Out of Store Selling Models: Puregold APAR for Sari-sari stores
Out of Store Selling Models Puregold APAR for Sari-sari stores 7
Slide 8: Out of Store Selling Models: Puregold APAR for Sari-sari stores
Out of Store Selling Models Puregold APAR for Sari-sari stores 8
Slide 9: Out of Store Selling Models: Puregold Caravan
Out of Store Selling Models Puregold Caravan 9
Slide 10: Out of Store Selling Models: Puregold Rolling Stores
Out of Store Selling Models Puregold Rolling Stores 10
Slide 11: Update on Puregold – 9M 2021
Update on Puregold – 9M 2021 11
Slide 12: 9M 2021 Results and Performance
9M 2021 Results and Performance Conso Net Sales -4% Conso Gross Profit +8.3% GPM 18.7% Conso Operating Income +6.7% Operating margin 7.9% Conso Net Income +13.6% Net margin 5% • Opened 19 new PGOLD stores and 2 S&R warehouse 9M 2021 • Operating 489 stores in 9M 2021; with consolidated NSA of around
Slide 13: Operating Performance – 9M 2021
Operating Performance – 9M 2021 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 28% Revenue contribution 72% Gross profit (PHP million) & Margin (%) 13,561 (16.4%) 7,933 (24.5%) Total traffic (million) 80.9 7.6 Average net ticket (PHP) 1,025 4,542 Net sales growth (%) -8.9% 7
Slide 14: Operating Performance – 9M 2021
Operating Performance – 9M 2021 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) 800,000 537,965 565,995 587,534 607,397 Group 2018 2019 2020 9M 21 700,000 Hypermarket 208 230 244 258 4,666 4,475 600,000 4,126 4,078 Supermarket 104 103 100 100 92,883 103,529 113,950 500,000 83,04
Slide 15: Store Portfolio – 9M 2021
Store Portfolio – 9M 2021 Key statistics 9M 2021 Geographic coverage Total no. of • 489 BULACAN Caloocan stores North Luzon • 258 hypermarkets; Valenzuela (123 stores) 100 supermarkets; Quezon City No. of stores 64 extras Navotas Malabon per format Caloocan • 22 S&Rs Marikina Metro Manila • 45 S&R Q
Slide 16: Financial Performance – 9M 2021
Financial Performance – 9M 2021 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 154.49 168.63 141.14 35 121.14 29.16 115.24 30 23.93 25.95 27.0 25 21.49 20 19.84 22.0 15 18.7% 17.0% 16.8% 17.3% 16.4% 10 17.0 5 0 12.0 2018 2019 2020 9M 20 9M 21 2018 2019 2020 9M 20 9M 21 Gross Pro
Slide 17: Financial Performance – 9M 2021
Financial Performance – 9M 2021 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 25,000 40 00 15.0% 18,954 3,263 16,639 17,830 20,000 14,756 2,941 3,155 2,298 2,325 13,645 30 00 15,000 10.0% 20 00 10,000 5.0% 00 2.1% 2.1% 1.9% 1.9% 2.0% 5,000 11.8% 11.5% 11.2% 11.3% 12.8
Slide 18: Financial Performance – 9M 2021
Financial Performance – 9M 2021 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 0 10,000 15.0% 0 13,357 8,053 13.0% 11,384 17.0% 8,000 6,773 5,735 0 10,231 9,064 6,200 11.0% 0 8,497 6,000 5,050 9.0% 12.0% 4.4% 4.8% 7.0% 0 7.4% 7.9% 7.9% 4,000 4.4% 5.0% 0 7.
Slide 19: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 50 25,000 118.24 124.03 18,528 2 109.53 20,000 16,997 17,659 2 90.99 82.88 15,000 13,561 00 12,694 2 1 10,000 15.5% 14.9% 16.4% 50 14.9% 1 5,000 14.0% 1 0 - 1 2018 2019 2020 9M 20 9M 21 2018 201
Slide 20: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 18,000 70. 16,000 44.61 14,000 60. 36.32 10,628 7,934 31.61 30.14 32.36 12,000 7,150 50. 10,000 8,291 8,000 6,932 40. 6,000 23.8% 23.7% 24.5% 30. 21.9% 22.8% 4,000 20. 2,000 - 10. 2018 2019 2020 9M 2
Slide 21: Financial Performance – 9M 2021
Financial Performance – 9M 2021 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2019 2020 9M 21 Trade Receivables Days 6.6 4.1 2.7 New Puregold Store roll out and new S&R Inventory Days 55.4 52.6 65.4 Stores to open in 2021 Similar payments terms to
Slide 22: CAPEX Guidance for FY 2021
CAPEX Guidance for FY 2021 • CAPEX Budget of Php 4.1 to 4.7 billion in 2021 – Php 1.7 to 2.3 billion for 30 to 40 new Puregold Stores – Php 1.6 billion for 2 S&R stores – Php 200 million for 10 S&R QSR – Php 600 million Maintenance Capex 22
Slide 23: In Summary
In Summary • Bullish as the economy opens up due to higher vaccination rates of the population • Continue our aggressive expansion plans • Leverage on marketing & selling innovations to be a major competitive advantage • Sari-sari store recovery is on track • Joint business plans with major supplier