PUREGOLD Price Club, Inc. is going into the remittance business through a new subsidiary, PurePadala, Inc.
In a disclosure to the stock exchange on Monday, Puregold said its board of directors has approved the incorporation of PurePadala, Inc.
“In partnership with banks, financial institutions, and other financial technology entities, PurePadala, Inc. is intended to operate a cash remittance business for the benefit of the customers and shoppers of Puregold Group of Companies,” the Lucio L. Co-led company said.
Puregold said the establishment of the new subsidiary will be subject to approval of government regulators.
For the first six months of 2018, Puregold said consolidated net income grew by 24% to P3.08 billion from P2.48 billion a year ago. This was driven by a 13.2% jump in consolidated net sales to P64.03 billion.
“This was principally driven by the continuous organic expansion of the group’s grocery retail outlets on the back of a sustained strong consumer demand. This has been augmented by combined management strategies and programs to boost revenue contributions from both the base stores as well as new stores established during the first half of 2018,” the company said in a regulatory filing.
Puregold grocery stores contributed the bulk of revenues, or 79%, while the remaining 21% came from S&R membership warehouse clubs and S&R New York Style Pizza stores.
During the first half, Puregold and S&R’s same-store sales growth stood at 6.1% and 5.9%, respectively. The company said it benefited from higher consumer spending due to increased levels of take-home pay after the implementation of the Tax Reform for Acceleration and Inclusion law.
As of June 30, the company had a total of 393 stores, of which 341 are Puregold stores, 16 are S&R membership shopping warehouse, and 36 are S&R New York Style quick service restaurants.
Puregold earlier said it is on track to construct 25 new Puregold stores this year, in addition to two new S&R warehouses.