Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — FY2023 Earnings Presentation
33 slides from Puregold Price Club's earnings presentation, April 2024
Slide 1: NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO
NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO
Slide 2: FY23 Results & Performance
FY23 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation April 2024 Years of Serbisyong Always Panalo Para Sa Pilipino
Slide 3: 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 4: Pure Play Philippine Food Retailer
Pure Play Philippine Food Retailer A Proxy for the Philippine Consumption Story • Robust topline growth from an enterprise with the broadest consumer segments • Healthy cash flows and a simple capital structure • Two marquee brands in Philippine retail: Puregold stores and S&R WHs • Beneficiary of a
Slide 5: Puregold Enterprise
Puregold Enterprise • Caters to the low income and low-middle income customers • Lower C, D and E market • Sari sari store customers/resellers • Popular local and small sized SKUs • Robust selling platform for all FMCG cos. doing business in PH • Membership shopping model • Catering to the upper inc
Slide 6: Shareholder Distribution
Shareholder Distribution 3.50 Year EPS DIV 3.00 2016 2.00 0.40 2017 1.99 0.40 2.50 2018 2.24 0.40 2.00 2019 2.30 0.45 1.50 2020 2.81 0.50 2021 2.85 0.86 1.00 2022 3.24 0.97 0.50 2023 2.98 5YR CAGR 10.2% 19.4% - 2016 2017 2018 2019 2020 2021 2022 2023 YoY 13.7% 12.8% EPS DIV * In Dec 2022, new divide
Slide 7: Macro Highlights in 2023
Macro Highlights in 2023 SNAPSHOT : PHILIPPINES SNAPSHOT : THE WORLD • Resilient mid-C, D and E markets • Inflationary pressures linger • Sustained strength from A, B and upper C markets • Soft commodities & Brent oil prices strengthening • Employment gains continue • Continued high geopolitical unc
Slide 8: Pillars of Growth 2024
Pillars of Growth 2024 01 02 03 04 05 More Stores More Shoppers Bigger Baskets Robust ESG Supply Chain Sustainability • High potential • Disproportionate • +8% organic store shopper wholesale • Institute good expansion in more initiatives & “salo- Fresh growth/ • End to End Supply governance practic
Slide 9: New Independent Directors
New Independent Directors Over 40 years of experience in the financial industry. President and CEO of Development Bank of the Phils. from 2019 to 2023. Best CEO for 2021 by the Association of Developmental Financial Institutions in Asia Pacific. President and CEO of Philippine Import-Export Credit A
Slide 10: New Independent Directors
New Independent Directors Over 30 years of experience in the telecommunications and financial industries. Over 12 years with Citibank in the Philippines, Singapore, Japan, Hong Kong, and New York, with stints in financial control, risk management, product development, treasury audit, corporate audit
Slide 11: Divimart Acquisition in 2023
Divimart Acquisition in 2023 Opportunity •Access to 32 locations instantly •Fit-outs allow for faster store opening – i.e. new PG Stores within 6 months •Leverage on a partnership to find & build more locations for PG Stores Cost •One-time acquisition cost Transaction Overview based on store area •A
Slide 12: Store Portfolio – FY 2023
Store Portfolio – FY 2023 GEOGRAPHIC COVERAGE KEY STATS NEW PG + S&R STORES 2023 TOTAL NUMBER 568 Opened OF STORES N.Luzon 151 323 hypermarkets 37 new Puregold Stores 98 supermarkets with (23 Divimart 187 Metro Manila NO. OF STORES 67 extra/minimart conversion) closed 1 store PER FORMAT 26 S&Rs S.Lu
Slide 13: Financial Performance - FY 2023
Financial Performance - FY 2023 13
Slide 14: Operating Performance – FY 2023
Operating Performance – FY 2023 REVENUE CONTRIBUTION 32% Traffic (in thousands) Ticket 68% Store Count Overall CY PY Dec 2023 Dec 2022 % growth Dec 2023 Dec 2022 % growth Puregold 488 452 138,068 125,820 9.7% 969 988 -1.9% S&R WH 26 22 12,785 11,657 9.7% 4,963 5,141 -3.5% Puregold S&R 14
Slide 15: Financial Highlights – FY 2023
Financial Highlights – FY 2023 CONSO REVENUE GROSS PROFIT EBITDA MARGIN % MARGIN % NIAT FY23 Php 199bn 17.8% 9.2% Php 8.6 bn YoY 8% -56 bps -111 bps -7.4% 15
Slide 16: Financial Performance – Conso 2023
Financial Performance – Conso 2023 NET SALES BREAKDOWN QTR NET SALES TREND in PHP Billions 65.0 8.0% 60.0 2023 55.0 7.6% 2022 50.0 133.8 124.3 2021 45.0 2020 40.0 2019 35.0 8.8% 60.0 65.3 30.0 1Q 2Q 3Q 4Q FY 22 FY 23 >> Record 4Q net sales. Best full year sales trajectory. High Single-digit sales gr
Slide 17: Margin Trends – Conso 2023
Margin Trends – Conso 2023 20.0% >> Groupwide competitive 18.3% 18.4% 17.8% pricing initiatives for market 18.0% 16.8% 17.3% share volume growth tempered GPM 16.0% by effect of joint business plans with suppliers 14.0% EBITDAM >> Higher frontloaded OPEX due 12.0% 10.5% 10.7% 10.3% to more store expa
Slide 18: CAPEX Guidance for FY 2024
CAPEX Guidance for FY 2024 CAPEX Budget of Php 8.1 billion in 2024 Php 2.4 billion for 30 new Puregold Stores Php 3.8 billion for 4 S&R WHs and 6S&R QSRs Php 500 million for logistics capex Php 1.4 billion for maintenance capex, solar projects and IT upgrades 18
Slide 19: Updated Management Guidance 2024
Updated Management Guidance 2024 Consolidated Revenue Growth 5% to 8% target Gross Profit Margin Puregold Stores: 15.5% to 16.5% target S&R WH: 21.5% to 22.5% target 19
Slide 20: Q&A
FY2023 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation Q&A
Slide 21: Thank you
Thank you LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO O ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO AN
Slide 22: Annex
FY 2023 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation ANNEX
Slide 23: Financial Performance FY23 – PGOLD Only
Financial Performance FY23 – PGOLD Only NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 160 30,000 140 133.77 24.0% 124.03 124.3 25,000 115.14 21,239 22.0% 120 20,178 100 20,000 18,528 18,476 20.0% 80 15,000 18.0% 60 16.0% 16.2% 15.9% 40 10,000 14.9% 16.0% 5,000 14.0% 20 0 - 12.0
Slide 24: Financial Performance FY23 – PGOLD Only
Financial Performance FY23 – PGOLD Only EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions) 15,000 20.0% 8,000 15.0% 18.0% 13,000 7,000 13.0% 10,152 16.0% 5,773 11,000 9,930 9,471 9,753 14.0% 6,000 5,557 11.0% 9,000 12.0% 5,000 4,542 4,130 9.0% 7,000 10.0% 4,000 7.0% 8.0% 8.2% 8.
Slide 25: Financial Performance FY23 – S&R Only
Financial Performance FY23 – S&R Only NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 80 70 65.27 20,000 70.0% 60 60.00 18,000 60.0% 49.04 16,000 13,642 14,175 50 44.61 14,000 11,607 50.0% 40 12,000 10,628 10,000 40.0% 30 8,000 20 6,000 23.8% 23.7% 22.7% 21.7% 30.0% 4,000 20.0% 1
Slide 26: Financial Performance FY23 – S&R Only
Financial Performance FY23 – S&R Only EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions) 7,000 30.0% 12,000 50.0% 6,000 45.0% 25.0% 10,000 8,923 4,972 7,750 8,209 8,733 40.0% 5,000 4,492 4,302 8,000 35.0% 4,000 4,000 20.0% 30.0% 15.0% 6,000 25.0% 17.4% 16.6% 14.9% 20.0% 3,000 9.
Slide 27: Financial Performance – FY 2023
Financial Performance – FY 2023 DEC 2023 DEC 2022 Trade Receivables Days 4.5 3.6 Inventory Days 61.6 60.0 Trade Payables Days 36.6 30.9 Cash Conversion Cycle 29.6 32.8 Notes: 1.Average of inventory at the beginning and end of the period / cost of sales x 363 (for full year)) 2.Average of trade recei
Slide 28: Shopper Trends 2023
Shopper Trends 2023 Timely and complete fulfillment More “in-person” Emphasis on value Preference for impactful promotions Strength of traditional channels 28
Slide 29: In-store Brand Refresh
In-store Brand Refresh Modern & dynamic Visuals Communicate value for money by Strengthening local appeal highlighting partner brands, categories, promos 29
Slide 30: Sustainability Highlights 2023
Sustainability Highlights 2023 ECONOMIC CONTRIBUTION PHP 16.6M invested to PHP 5.22B taxes paid to PHP 4.5B employee community including the government wages and benefits LCCK 13,058 total no. of direct employees 0 incidents of corruption 30
Slide 31: Sustainability Highlights 2023
Sustainability Highlights 2023 ENVIRONMENT PERFORMANCE 20.1M Clean electricity produced 101M reduction of plastic bags used in Puregold stores compared to 2018 Solar Power rooftop in 26 S&R Warehouse Clubs, 1 S&R 54% of Puregold stores use paper bags Distribution Center, and 13 and promote monthly u
Slide 32: Sustainability Highlights 2023
Sustainability Highlights 2023 SOCIAL RESPONSIBILITY 994 scholars graduated, 0 legal actions or 57% female employees 137 passed licensure employee grievance on in the workforce exam, 260 current no. of forced and child labor scholars 827,000+ Puregold Sari-Sari Store members 1.9M Puregold Mobile (Su
Slide 33: Sustainability Highlights 2023
Sustainability Highlights 2023 33