PUREGOLD Price Club, Inc. (PGOLD) said net profit in 2018 rose 11.6%, as the rise in take-home pay as a result of the passage of the tax reform law booted consumer spending.
In a regulatory filing on Friday, the company said consolidated net income was P6.52 billion in 2018, up from P5.8 billion in 2017.
Puregold stores posted net sales of P140.9 billion in 2018, up 13.2%.
Operating income rose 3.3% to P8.94 billion last year.
The revenue mix is 78% generated by Puregold stores and the remainder from S&R Membership warehouse clubs and S&R New York Style Pizza stores.
Puregold stores posted “stronger-than-expected” same-store sales growth (SSSG) of 5.8% in 2018 while S&R registered SSSG of 8.4% during the same period.
“We were able to sustain our SSSG in the last quarter of 2018 driven by higher consumer spending fueled both by minimum wage inflation and higher take-home pay as a result of the tax reform law passed early 2018,” Puregold’s statement read.
At the end of 2018, the Puregold group had 408 stores nationwide. This includes 354 Puregold stores, 16 S&R membership shopping warehouses and 39 S&R New York Style QSR.
“We will grow another 25 new Puregold stores and four new S&R warehouse as part of our store network expansion in 2019,” the company added.
On Friday, Puregold fell 2.65% to P47.70. — Janina C. Lim