Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — 9M 2024 Earnings Presentation
29 slides from Puregold Price Club's earnings presentation, November 2024
Slide 1: NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO
NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO
Slide 2: 9M24 Results & Performance
9M24 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation November 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 Year EPS DIV 2016 2.00 0.40 2017 1.99 0.40 2018 2.24 0.40 2019 2.30 0.45 2020 2.81 0.50 2021 2.85 0.86 2022 3.24 0.97 2023 3.00 0.90 5YR CAGR 6.0% 17.6% EPS DIV * In Dec 2022, new dividend policy to declare as dividend at least 30% of income of the previous year 6
Slide 7: 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 8: Store Portfolio – 9M 2024
Store Portfolio – 9M 2024 GEOGRAPHIC COVERAGE KEY STATS NEW PG + S&R STORES 2024 TOTAL NUMBER Opened 590 161 OF STORES 19 new Puregold Stores N.Luzon 341 hypermarkets closed 2 stores 98 supermarkets 187 Metro Manila NO. OF STORES 66 extra/minimart 3 new S&R Warehouse PER FORMAT 28 S&Rs (1 under reno
Slide 9: Financial Performance – 9M 2024
Financial Performance – 9M 2024 9
Slide 10: Operating Performance – 9M 2024
Operating Performance – 9M 2024 REVENUE CONTRIBUTION 33% 67% 28 Puregold S&R 10
Slide 11: Financial Highlights – 9M 2024
Financial Highlights – 9M 2024 CONSO REVENUE GROSS PROFIT EBITDA MARGIN % MARGIN % NIAT 9M 24 Php 151.98bn 18.2% 9.5% Php 6.9 bn YoY +9.1% -14 bps -38 bps +4.5% 11
Slide 12: Financial Performance – Conso 9M 2024
Financial Performance – Conso 9M 2024 NET SALES BREAKDOWN QTR NET SALES TREND in PHP Billions 9.1% 152 139.3 7.3% 102.2 95.2 12.9% 44.1 49.7 9M 23 9M 24 >> Record 9M net sales. High Single-digit sales growth YoY for the group. >> 9M 24 YoY major contributors are higher traffic in PG store and S&R wi
Slide 13: Margin Trends – Conso 9M 2024
Margin Trends – Conso 9M 2024 24.0% >> Groupwide competitive pricing initiatives for market 22.0% share volume growth tempered 20.0% 18.3% 18.4% 18.2% by effect of joint business plans 17.3% 17.8% 18.0% 16.8% with suppliers 16.0% GPM 14.0% >> Higher OPEX due to more store EBITDAM expansion and incre
Slide 14: Margin Trends – PG & S&R Only 9M24
Margin Trends – PG & S&R Only 9M24 2024 vs 2023 Puregold Only 1Q 2Q 3Q >> Groupwide competitive Rev Growth 5.8% 6.4% 9.7% pricing initiatives for GPM 17.8% 16.1% 14.1% market share volume SSSG 1.7% 2.0% 6.7% growth coupled with improvement in SSSG S&R Only 1Q 2Q 3Q Rev Growth 8.6% 15.5% 14.5% GPM 23
Slide 15: 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 15
Slide 16: 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 16
Slide 17: Update on Puremart Acquisition 2024
Update on Puremart Acquisition 2024 Acquisition Cost: Php 568 million EV/EBITDA Multiple: 4x # of stores: at least 120-130 stores Average Store size: 150 sqm Rationale: Address “proximity shopping” Cheaper costs (less than Php 2.5 million/store) 17
Slide 18: Q&A
FY2023 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation Q&A
Slide 19: 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 20: Annex
FY 2023 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation ANNEX
Slide 21: Financial Performance 9M24 – PGOLD Only
Financial Performance 9M24 – PGOLD Only NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 160 30,000 124.03 133.77 24.0% 140 115.14 124.3 25,000 21,239 20,178 22.0% 95.24 102.24 120 20,000 18,528 18,476 100 15,666 16,276 20.0% 80 15,000 16.0% 16.2% 15.9% 16.4% 15.9% 18.0% 60 40 10,
Slide 22: Financial Performance 9M24 – PGOLD Only
Financial Performance 9M24 – PGOLD Only EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions) 5,000 20.0% 18.0% 3,000 16.0% 1,000 9,930 9,471 10,152 9,753 14.0% 8,000 15.0% 9,000 7,781 7,000 5,773 13.0% 7,390 12.0% 6,000 5,557 11.0% 7,000 8.0% 8.2% 8.2% 8.2% 10.0% 5,000 4,542 4,130
Slide 23: Financial Performance 9M24 – S&R Only
Financial Performance 9M24 – S&R Only NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 80 20,000 70.0% 70 65.27 18,000 60.00 60.0% 60 49.74 16,000 13,642 14,175 44.61 49.04 10,628 11,607 11,375 14,000 50 44.06 12,000 50.0% 40 10,000 9,869 40.0% 30 8,000 6,000 23.8% 23.7% 22.7% 21.
Slide 24: Financial Performance 9M24 – S&R Only
Financial Performance 9M24 – S&R Only EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions) 12,000 50.0% 45.0% 10,000 8,923 8,733 40.0% 7,000 30.0% 7,750 8,209 35.0% 6,000 8,000 7,028 30.0% 4,972 25.0% 5,969 5,000 4,000 4,492 4,302 20.0% 6,000 17.4% 16.6% 25.0% 3,452 14.9% 13.4% 13
Slide 25: Financial Performance – 9M 2024
Financial Performance – 9M 2024 DEC 2023 9M 23 9M 24 Trade Receivables Days 4.5 3.2 3.4 Inventory Days 61.6 69.0 65.0 Trade Payables Days 36.6 30.0 31.5 Cash Conversion Cycle 29.6 42.1 36.8 Notes: 1.Average of inventory at the beginning and end of the period / cost of sales x 363 (for full year)) 2.
Slide 26: 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 26
Slide 27: 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 28: 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 29: Sustainability Highlights 2023
Sustainability Highlights 2023 29