Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — Q1 2021 Earnings Presentation
19 slides from Puregold Price Club's earnings presentation, May 2021
Slide 1: Company Presentation: 1Q 2021 Results and Performance
Company Presentation 1Q 2021 Results and Performance May 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 • Catering to the upper income customers • Class A & B and upper C segment • Imported and large size SKUs Puregold • Caters to the low income and low-middle income customers • Lower C, D and E market • Sari sari store customers/resellers • Popular
Slide 4: Store roll-out through FY 2020
Store roll-out through FY 2020 436 469 408 360 298 215 102 64 16 30 1 3 1998 2001 2006 2008 2010 2011 2013 2015 2017 2018 2019 2020 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: 5 Pillars of Growth in 2021
5 Pillars of Growth in 2021 1. Protect our Supply Chain - Revised inventory targets for emerging categories, food preparation and health/sanitation - Increased inventory levels since most companies had supply chain disruptions during lockdown and raw materials/packaging material sourcing - Develop l
Slide 6: 5 Pillars of Growth in 2021
5 Pillars of Growth in 2021 3. New Channel Development & Marketing Activities ‒ Reactivate coverage of sari-sari stores ‒ Opening up of new accounts ‒ E-commerce investments 4. Margin Improvement - House Brands - Streamlining of current operations thru improved processes and digitization - Smart pri
Slide 7: Update on Puregold – 1Q 2021
Update on Puregold – 1Q 2021 7
Slide 8: 1Q 2021 Results and Performance
1Q 2021 Results and Performance • Consolidated net sales is lower by 7.9% in 1Q 2021; • Gross profit grew by 4% in 1Q 2021; with gross profit margin improving to 19.1% • Operating income increased by 11.4% in 1Q 2021; with operating margin at 8.8% • Consolidated Net income increased by 14.6% in 1Q 2
Slide 9: Operating Performance – 1Q 2021
Operating Performance – 1Q 2021 Format Hypermarket, supermarket, extra Membership shopping S&R Puregold 28% Revenue contribution 72% Gross profit (PHP million) & Margin (%) 4,619 (17.0%) 2,592 (24.7%) Total traffic (million) 27 2.5 Average net ticket (PHP) 1,004 4,461 Net sales growth (%) -13.2% 12.
Slide 10: Operating Performance – 1Q 2021
Operating Performance – 1Q 2021 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) 537,965 565,995 587,534 595,274 Group 2019 2020 1Q 21 800,000 700,000 Hypermarket 230 244 252 4,666 4,666 600,000 4,126 4,078 Supermarket 103 100 100 92,883 103,529 103,529 500,000 83,048 400,000 Ext
Slide 11: Store Portfolio – 1Q 2021
Store Portfolio – 1Q 2021 Key statistics 1Q 2021 Geographic coverage Total no. of 479 BULACAN Caloocan stores North Luzon 252 hypermarkets; Valenzuela (120 stores) 100 supermarkets; Quezon City No. of stores 61 extras Navotas Malabon per format Caloocan 20 S&Rs Marikina Metro Manila 46 S&R Q
Slide 12: Financial Performance – 1Q 2021
Financial Performance – 1Q 2021 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 168.63 154.49 35 141.14 29.16 30 23.93 25.95 27.0% 25 20 22.0% 15 19.1% 40.95 37.73 17.0% 16.8% 17.3% 16.9% 7.21 10 6.93 17.0% 5 0 12.0% 2018 2019 2020 1Q 20 1Q 21 2018 2019 2020 1Q 20 1Q 21 Gross Pro
Slide 13: Financial Performance – 1Q 2021
Financial Performance – 1Q 2021 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 25,000 40.0% 35.0% 00 20,00015.0% 17,830 18,954 3,263 3,155 16,639 30.0% 00 2,941 15,000 25.0% 10.0% 20.0% 00 823 810 10,0005.0% 4,791 4,714 15.0% 00 2.1% 2.1% 1.9% 2.0% 2.1% 5,000 11.8% 11.
Slide 14: Financial Performance – 1Q 2021
Financial Performance – 1Q 2021 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 10,000 15.0 20.0% 13,357 18.0% 8,053 13.0 11,384 8,000 6,773 11.0 10,231 16.0% 6,200 8.8% 14.0% 6,000 9.0% 7.9% 12.0% 4.8% 7.0% 7.4% 7.2% 4,000 4.4% 4.4% 5.4% 7.2% 10.0% 4.3% 2,
Slide 15: Financial Performance – Puregold Only
Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 25,000 24.0% 50 20,000 16,997 17,659 18,528 109.53 118.24 124.03 22.0% 15,000 20.0% 00 17.0% 18.0% 10,000 15.5% 14.9% 14.9% 4,633 4,619 50 31.38 27.245,000 14.8% 16.0% 14.0% 0 - 12.0% 2018 2019
Slide 16: Financial Performance – S&R Only
Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 18,000 70.0% 44.61 16,000 60.0% 36.32 14,000 31.61 12,000 10,628 50.0% 10,000 8,291 8,000 6,932 24.7% 40.0% 6,000 22.8% 23.8% 24.0% 2,592 30.0% 9.57 10.49 21.9% 4,000 2,302 20.0% 2,000 - 10.0% 2018 2
Slide 17: Financial Performance – 1Q 2021 working capital days
Financial Performance – 1Q 2021 Working capital days due to S&R importations and Puregold rapid store expansions and acquisitions 2019 2020 1Q 21 Trade Receivables Days 6.6 4.1 2.6 Inventory Days 55.4 52.6 64.8 New Puregold Store roll out and new S&R Stores to opened in 2020 Trade Payables Days 22.9
Slide 18: 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 18
Slide 19: In Summary
In Summary • Bullish for 2021 as the economy opens up given the massive vaccination program starting in the 3rd quarter • Continue our aggressive expansion plans • Marketing plans are improved upon to cope with current pandemic and shopper trends • Sari-sari store recovery is on track • Joint busine