LISTED retailer Puregold Price Club, Inc. reported a 10.8% increase in consolidated net income to P5.87 billion in the first half from P5.30 billion a year earlier, driven by higher sales and improved gross margins.
Consolidated net sales rose 10.6% to P121.48 billion from P109.88 billion, the company said in a disclosure on Thursday.
“The strong earnings performance was driven by robust topline growth, further supported by an improvement in gross margins amid sustained supplier support,” Puregold said in a press release.
Same-store sales growth (SSSG) at Puregold stores stood at 3.7%, driven by higher basket sizes, while SSSG at S&R warehouse clubs reached 12.8%, mainly due to higher customer traffic.
Gross profit increased 12.9% to P23.66 billion from P20.95 billion, with gross margin improving to 19.5% from 19.1%.
Other operating income rose 5.9% to P1.97 billion from P1.86 billion, bringing gross operating income to P25.63 billion, up 12.4% from P22.81 billion. Gross operating margin improved to 21.1% from 20.8%.
Operating expenses increased 11.7% to P16.74 billion from P14.99 billion, while operating income rose 13.6% to P8.89 billion from P7.82 billion.
Other expenses, net of other income, increased 28.5% to P1.24 billion from P966 million. Net income before tax rose 11.5% to P7.65 billion from P6.86 billion, while income tax expense increased 13.9% to P1.77 billion from P1.56 billion.
As of end-June, Puregold operated 794 stores nationwide, comprising 688 Puregold stores, 33 S&R Membership Shopping warehouses, and 73 S&R New York Style stores.
Puregold shares fell 0.12% to P41 apiece on Thursday. — Alexandria Grace C. Magno
