Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — H1 2018 Earnings Presentation
18 slides from Puregold Price Club's earnings presentation, August 2018
Slide 1: Puregold Price Club, Inc. Company Presentation 1H 2018 Results
PUREGOLD PRICE CLUB, INC. Company Presentation 1H 2018 Results and Performance August 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 – 1H 2018 5
Slide 6: 1H 2018 Results and Performance
1H 2018 Results and Performance • Opened 15 new PGOLD stores; 2 S&R Warehouse and 4 S&R New York Style Pizza (QSR) in 1H 2018 • Operating 393 stores in 1H 2018; with consolidated NSA of more than 540,000 sqm • Consolidated net sales expanded by 13.2% in 1H 2018; Puregold stores sales accounted for a
Slide 7: Operating Performance
Operating Performance – 1H 2018 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 21% Revenue contribution 79% Gross profit (PHP million) & Margin (%) 7,609 (15.0%) 2,890 (21.5%) Total traffic (million) 87 3.7 Average net ticket (PHP) 583 3,711 Net sales growth (%) 11.1% 21.5%
Slide 8: Operating Performance
Operating Performance – 1H 2018 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) Group 2015 2016 2017 1H 18 426,559 486,722 518,862 540,684 Hypermarket 134 147 171 198 2,715 3,509 3,863 1,720 62,037 72,904 83,048 Supermarket 93 100 103 105 50,963 Extra 28 30 35 38 373,876 421,970
Slide 9: Store Portfolio
Store Portfolio – 1H 2018 Key statistics 1Q 2018 Geographic coverage Total no. of 393 BULACAN Caloocan stores North Luzon 198 hypermarkets; Valenzuela (95 stores) 105 supermarkets; Quezon City No. of stores 38 extras Navotas Malabon per format Caloocan 16 S&Rs Marikina Metro Manila 36 S&R QS
Slide 10: Financial Performance
Financial Performance – 1H 2018 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 124.49 112.59 25 20.65 97.17 20 18.54 27.0% 16.49 56.58 64.03 15 10.5 9.4 22.0% 10 17.0% 5 17.0% 16.5% 16.6% 16.6% 16.4% 0 12.0% 2015 2016 2017 1H 17 1H 18 2015 2016 2017 1H 17 1H 18 Gross Profit GP M
Slide 11: Financial Performance
Financial Performance – 1H 2018 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 20,000 40.0% 4,000 35.0% 3,266 3,513 14.0% 15,516 3,500 2,886 15,000 12.0% 13,707 30.0% 3,000 1,594 1,942 10.0% 12,225 25.0% 2,500 8.0%10,000 8,474 20.0% 2,000 6.0% 7,387 15.0% 1,500 1,000 3
Slide 12: Financial Performance
Financial Performance – 1H 2018 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 10,000 35.0% 7,000 25.0% 8,097 8,652 30.0% 6,000 5,526 5,840 8,000 20.0% 7,150 25.0% 5,000 5,002 3,081 6,000 3,967 20.0% 4,000 2,488 15.0% 3,604 4,000 15.0% 3,000 10.0% 7.4% 7.2
Slide 13: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 20,000 25.0% 98.62 90.94 79.61 15,000 13,831 15,030 23.0% 12,480 21.0% 50.61 10,000 6,995 7,609 19.0% 45.54 17.0% 5,000 15.7% 15.2% 15.2% 15.4% 15.0% 15.0% - 13.0% 2015 2016 2017 1H 17 1H 18 201
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 4,708 5,000 17.82 4,008 50.0% 4,000 2,402 2,890 13.41 40.0% 11.03 3,000 30.0% 2,000 22.5% 21.7% 21.7% 21.8% 21.5% 1,000 20.0% - 10.0% 2015 2016 2017 1H 17 1H
Slide 15: Financial Performance – Working Capital
Financial Performance – 1H 2018 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2015 2016 2017 1H 18 Trade Receivables Days 5.7 6.0 7.0 5.0 New Puregold Store roll out and new S&R Inventory Days 54.3 56.9 59.8 64.2 Stores to be opened in 2018 Trade P
Slide 16: CAPEX Guidance for FY 2018
CAPEX Guidance for FY 2018 • CAPEX Budget of Php 3.65 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 250 million IT System Upgrade – Php 700 million Maintenance Capex • To be funded by internally generated cash and
Slide 17: Guidance for 2018
Guidance for 2018 • Consolidated net sales targeted to grow by 7 to 9% 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