Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — H1 2019 Earnings Presentation
18 slides from Puregold Price Club's earnings presentation, August 2019
Slide 1: Company Presentation: 1H 2019 Results and Performance
Company Presentation 1H 2019 Results and Performance August 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 – 1H 2019 5
Slide 6: 1H 2019 Results and Performance
1H 2019 Results and Performance • Opened 12 new PGOLD stores; 1 S&R Warehouse in 1H 2019; closed 1 PGOLD store and 1 S&R QSR • Operating 419 stores in 1H 2019; with consolidated NSA of around 550,000 sqm • Consolidated net sales expanded by 11.3% in 1H 2019; Puregold stores sales accounted for about
Slide 7: Operating Performance – 1H 2019
Operating Performance – 1H 2019 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 22% Revenue contribution 78% Gross profit (PHP million) & Margin (%) 8,367 (15.1%) 3,448 (22.1%) Total traffic (million) 88 4.1 Average net ticket (PHP) 630 3,929 Net sales growth (%) 9.8% 18.1% T
Slide 8: Operating Performance – Stores, Net Selling Area, Traffic
Operating Performance – 1H 2019 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) Group 2016 2017 2018 1H 19 486,722 518,862 537,965 548,907 Hypermarket 147 171 208 218 4,126 4,010 2,715 3,509 72,904 83,048 87,470 Supermarket 100 103 104 104 62,037 Extra 30 35 42 43 S&R 12 14 16 1
Slide 9: Store Portfolio – 1H 2019
Store Portfolio – 1H 2019 Key statistics 1H 2019 Geographic coverage Total no. of 419 BULACAN Caloocan stores North Luzon 218 hypermarkets; Valenzuela (103 stores) 104 supermarkets; Quezon City No. of stores 43 extras Navotas Malabon per format Caloocan 17 S&Rs Marikina Metro Manila 37 S&R Q
Slide 10: Financial Performance – Net Sales and Gross Profit
Financial Performance – 1H 2019 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 140.92 30 124.49 112.59 23.84 25 21.48 27.0% 19.38 20 63.92 71.14 11.82 22.0% 15 10.99 10 17.0% 5 17.2% 17.3% 16.9% 17.2% 16.6% 0 12.0% 2016 2017 2018 1H 18 1H 19 2016 2017 2018 1H 18 1H 19 Gross Prof
Slide 11: Financial Performance – Other Income, OPEX, EBITDA
Financial Performance – 1H 2019 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 20,000 40.0% 15.0% 15,516 17,840 35.0% 2,692 2,941 15,000 13,707 30.0% 2,429 1,364 1,491 10,000 10.0% 8,514 25.0% 7,782 20.0% 15.0% 5.0% 2.2% 2.2% 2.1% 2.1% 2.1% 5,000 12.2% 12.5% 12.7% 12.2
Slide 12: Financial Performance – EBIT and Net Income
Financial Performance – 1H 2019 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 0 35.0% 0 8,652 8,941 7,500 25.0% 0 8,097 30.0% 6,520 6,500 25.0% 5,526 5,840 20.0% 0 5,500 0 4,575 4,792 20.0% 4,500 0 2,971 2,828 15.0% 0 15.0% 3,500 2,500 10.0% 0 7.2% 7.0% 6
Slide 13: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 20,000 25.0 109.47 15,681 16,898 90.94 98.62 14,451 23.0 15,000 8,112 8,367 21.0 50.61 55.56 10,000 19.0 5,000 15.9% 15.9% 15.4% 16.0% 17.0 15.1% 15.0 - 13.0 2016 2017 2018 1H 18 1H 19 2016 2017
Slide 14: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 8,000 70 6,942 31.45 7,000 5,795 60 25.87 6,000 4,924 21.65 5,000 3,448 50 2,880 13.31 15.58 4,000 40 3,000 30 2,000 22.7% 22.4% 22.1% 21.6% 22.1% 20 1,000 - 10 2016 2017 2018 1H 18 1H 19 2016 2017 2
Slide 15: Financial Performance – Working Capital Days
Financial Performance – 1H 2019 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2016 2017 2018 1H 19 Trade Receivables 6.0 7.0 7.6 6.0 Days Inventory Days 56.9 59.8 58.0 59.2 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 (3 to 5%) and S&R (3 to 5%) – Opening of 25 new Puregold stores – Opening of 4 S&R Warehouse stores & 2 S&R QSRs • Sus
Slide 18: Q&A Thank you!
Q&A Thank you! 18