Grocery Retailing

January 18, 2016
 
by Business Mirror
 
SUPERMARKET operator Puregold Price Club Inc. on Monday said it secured its stockholders’ approval that will expand its business to offering remittance service to tap mainly overseas Filipino workers (OFWs).
 
In a disclosure to the Philippine Stock Exchange, Puregold, owned by businessman Lucio L. Co, said 79 percent of its total outstanding capital stock, or 2.18 billion shares, voted for their proposed amendment of the articles of incorporation.
 
The amendment pertains to the inclusion of remittance services as one of Puregold’s main businesses.
 
“To act as remittance agent that offers to remit, transfer, or transmit money on behalf of any person to another person and/or entity as defined in the Bangko Sentral ng Pilipinas, Circular 471, Series of 2005,” the company said.
 
The remittance service enables OFWs to allocate their remittances for specific expenses, such as grocery items, tuition, bill payments and the amount that the recipient may claim as cash.
 
Vincent Co, Puregold’s newly appointed president, said one of the remittance service’s options includes remitting cash that can only be spent through Puregold grocery purchases.
 
The sender can also specify how much of the amount sent would be used for grocery shopping at any Puregold store or payment for utility bills, credit-card dues, tuition and how much a recipient can encash.
 
“The service is a way to help assure overseas Filipino workers that the money they are sending back home would be spent wisely,” Co said, when the service was launched middle of last year.
 
The service runs through Globe Telecom Inc.’s G-Cash service.
 
Puregold may spend lower capital expenditures this year to just P2.6 billion, mainly for the organic expansion of Puregold stores and S&R membership shopping from last year’s P3.4 billion.
 
This year’s capex is seen ending at P3.4 billion.
 
The amount spent last year was for the combined acquisition of the NE Bodega stores and Budgetlane Supermarket.
 
“We have no budget yet for acquisition cost for next year,” the company’s Vice President for Investor Relations John Marson Hao said earlier.
 
The company said it will spend P1 billion each for 25 new Puregold and two S&R stores for next year; P450 million for 75 Lawson convenience stores; and P150 million for its 10 stores of quick-service S&R New York Pizza.
 
At the end of 2015, Puregold supermarket had 257 branches mainly in Metro Manila and Luzon. NE Bodega stores will have nine; Budget Lane with eight; Lawson at 10; and S&R Membership Shopping at 15.
 
For the first nine months of the year, Puregold net income rose 6.5 percent to P3.2 billion, from last year’s P3 billion.
 
Puregold stores contributed a lion’s share of that income to P2 billion, followed by S&R at P1.17 billion.

INVESTMENT. Puregold Vice President for Operations Antonio de los Santos says the firm invested P3.4 billion in 2015 but this included P1.5 billion for acquisitions this year. File photo from Puregold website

MANILA, Philippines – Puregold Price Club Incorporated, the country's second largest supermarket chain owned by billionaire Lucio Co, said it will spend P2.64 billion ($55.81 million) in capital expenditures for 2016, primarily for new grocery outlets and convenience stores.

John Hao, Puregold investor relations head, said the company will be spending P1 billion ($21.15 million) to build 25 new Puregold stores; P1 billion ($21.15 million) to open two S&R membership shopping branches; P450 million to launch 75 branches of convenience store chain Lawson; and P150 million ($3.17 million) for 10 branches of S&R New York Style Pizza restaurants.

Puregold Vice President for Operations Antonio de los Santos said the firm invested P3.4 billion ($71.90 million) in 2015 but this included P1.5 billion ($31.72 million) for acquisitions. (READ: Puregold to spend P5.5B in capital expenditures for 2015)

Puregold has made two acquisitions this year – the 9-store supermarket chain NE Bodega owned by Nueva Ecija-based retailer NE Incorporated and an 8-store grocery chain called Budgetlane. (READ: Lucio Co's Puregold acquires BudgetLane supermarket chain)

As of end-September 2015, Puregold has 267 stores nationwide, including 9 S&R branches and 13 S&R New York Style Pizza restaurants. That's aside from the 17 stores of NE Bodega and Budgetlane.

Possible acquisitions

Puregold's capital spending for 2016 does not include possible acquisitions, a strategy that the company has adopted to expand its portfolio.

The company is focused on North Luzon and Visayas-Mindanao as areas for expansion, but it also continues to explore other areas in Metro Manila, like Pateros.

Despite the aggressive expansion, Hao said the company expects slower growth in net income and revenues next year, compared to 2015.

He explained that the base of Puregold has become bigger, making it difficult to maintain an aggressive growth rate.

But the company will also continue to open at least 25 stores annually over the next 5 years, Hao said.

Store sales are also expected to be maintained at 3% next year.

For the first 9 months of 2015, Puregold reported a consolidated net income of P3.2 billion ($67.67 million), up 6.5% compared to P3 billion ($63.45 million) in the same period in 2014.

Puregold consolidated net sales increased by 12.6% to P67.33 billion ($1.42 billion) for the first 9 months of 2015 due to the strong consumer demand.

Income from operations grew to P4.58 billion ($96.86 million) in the first 3 quarters of 2015, up by 6.6% versus the P4.29 billion ($90.81 million) during the same period last year.

Share price of Puregold on Friday closed at P33.75 ($0.71) per share, down 0.74% from the Thursday’s close.  Rappler.com

$1 = P47.24

Source: http://www.rappler.com/business/industries/115675-puregold-capital-expenditures-2016

01:08 AM January 11th, 2016
 
By: Doris Dumlao-Abadilla

PUREGOLD Price Club Inc., which is led by businessman Lucio Co, has been given the leeway to enter the pharmaceutical distribution business as a way to diversify its product offering to consumers.

In a disclosure to the Philippine Stock Exchange on Friday, Puregold said the Securities and Exchange Commission had approved the amendments of its articles of incorporation to include “selling pharmaceutical and medical goods, cosmetic, medicines, medical formulations, food supplements, etc. in the primary purpose of the company.”

The amendment was sought to comply with the regulations of Food and Drug Administration related to the sale of pharmaceutical and medical goods, cosmetics, medicines, medical formulations, food supplements and similar products.

In his private capacity, Co entered the pharmaceutical distribution business in early 2013 with the acquisition of ThreeSixty Pharmacy, a Cebu-based drug store chain.

This allowed the retailing magnate to gain a foothold in the Visayas and fueled expectations that Puregold would venture into pharmaceutical distribution.

The acquisition was made through a tightly held company and not through any of the publicly listed companies affiliated with the Cos.

A change in the primary purpose of Puregold, however, gives the group the option to fold this business into the publicly listed entity in the future.

At the time of acquisition, ThreeSixty Pharmacy had about 63 stores, mostly concentrated in Cebu while a few stores are in Leyte and Bohol.

A new player in pharmaceutical distribution, ThreeSixty Pharmacy was established in Cebu in 2010 by the Yap family, which is also into furniture exports and merchandise trading business.

Aside from retailing, ThreeSixty Pharmacy has a wholesale division that aims to serve the neighboring cities and provinces in the Visayas.

Through Cosco Capital, the parent firm of Puregold, the Co-led group has ventured into other retailing formats.

In 2014, it announced the acquisition of Office Warehouse, a retailer of school and office supplies.

Puregold is the operator of the country’s second largest grocery chain.

It booked a consolidated net income of P3.2 billion for the first nine months of 2015, 6.5 percent higher year-on-year.

Consolidated net margins for the period stood at 4.8 percent.

During the first nine months of 2015, the group opened 16 Puregold stores, seven S&R quick-service restaurant (S&R New York Style Pizza) stores and 11 Lawson convenience stores.

It also acquired the nine-store NE Bodega supermarket and eight-store Budgetlane Supermarket.

Excluding new store openings and acquisitions, same-store sales growth stood at 3.6 percent, which the group deemed as better than expectations.

Puregold’s consolidated net sales increased by 12.6 percent year-on-year to P67.33 billion in the first nine months of 2015 due to the strong consumer demand from its existing Puregold, S&R stores and S&R New York Style Pizza stores as well as new stores opened during the year.

As of end-September 2015, Puregold had 267 stores nationwide, including a total of nine S&R stores, and 13 S&R New York Style restaurants.

SOURCE: http://business.inquirer.net/205334/cos-puregold-diversifies-pharma-distribution

January 13, 2016 8:39 pm

by Katrina Mennen A. Valdez

Lucio Co-led Cosco Capital, Inc. has tapped veteran investment banker Roberto Juanchito Dispo as one of its advisers.

In a disclosure to the Philippine Stock Exchange, Cosco Capital Inc. said on Wednesday that the Dispo’s appointment as adviser to the board of directors would take effect January 18.

Dispo was recently named vice chairman and president of Cirtek Holdings Philippines Corp.

He is the former president of First Metro Investment Corp., the investment banking unit of the Ty-controlled Metrobank Group where he served for nearly two decades.

Dispo previously worked with the government as deputy treasurer and also held positions in the Defense and Trade departments.

He is also a former president of the Money Market Association of the Philippines and is currently the chairman of Capital Markets Development Committee of FINEX.

“Mr. Dispo is a seasoned investment banker with extensive experience in capital raising, investments, strategic acquisition, and asset management,” Cosco said.

“Cosco Capital, Inc. believes that Mr. Dispo’s broad experience in investments, strategic acquisition and management including his previous position as Deputy Treasurer of the Philippines could provide the Board with expert guidance to be a more competitive conglomerate in the Philippine market,” it added.

The holding firm’s interests include Puregold Price Club, Inc. and S&R Membership Shopping. Its portfoluo also includes real estate and property leasing, liquor distribution, oil and mining, and specialty retail ventures.

Source: http://www.manilatimes.net/cosco-taps-banker-to-advise-its-board/239208/

December 11, 2015

By James A. Loyola and Bernie Cahiles-Magkilat

Puregold Price Club Inc. is allotting P2.6 billion for its capital expenditure budget next year, mainly to fund the continuing expansion nationwide of its various retail formats and quick service restaurant chain.In an interview, Puregold vice president for operations Antonio de los Santos said the firm invested P3.4 billion this year but this included P1.5 billion for the acquisition of NE Bodega and Budgetlane in 2015.De los Santos said they are spending P1 billion for the construction of 25 Puregold stores, P1 billion for two S & R Membership Shopping stores, P450 million for 75 Lawson convenience stores, and P150 million for 10 branches of S&R New York Style Pizza restaurants.

The bulk of the expansion will still be in Luzon although they also want to expand operations in Visayas and Mindanao, said De los Santos adding that they have not yet set aside a specific budget for acquisitions for next year.

By the end for the year, the firm expects to have 257 Puregold stores, 9 branches of NE Bodega, 8 Budgetlane branches, 15 to 20 Lawson stores, and 15 branches of S&R.Despite its now bigger base, De los Santos said the firm is seen to grow its revenues and bottomline by double digits in 2016, around the low to mid teens.

Puregold, the country’s second largest grocery retailer, reported a 6.5 percent increase in consolidated net income to P3.2 billion for the first nine months of 2015 from the P3 billion earned in the same period last year.

The firm said its consolidated net margins for the first nine months 2015 amounted to 4.8 percent.

“We are excited about the growth prospects for Puregold in 2015. During the first nine months of 2015, we have opened 16 Puregold Stores, 7 S&R QSR stores, 11 Lawson Stores and have acquired the 9 store NE Bodega supermarket and 8 store Budgetlane Supermarket,” said Puregold president Vincent Co.

He added that “Puregold only same store sales growth of 3.6 percent for the first nine months 2015 is tracking better than our expectations.”

Puregold consolidated net sales increased by 12.6 percent to P67.33 billion for the first nine months of 2015 due to the strong consumer demand from its existing Puregold, S&R stores and pizza stores as well as new stores opened during the year.Income from operations grew 6.6 percent to P4.58 billion in first nine months 2015 from the P4.29 billion generated during the same period last year.

Puregold President Vincent Co also explained that Puregold is going back to a unified branding instead of having various retail formats of Puregold, Puregold Jr. and Puregold Extra into the generic Puregold brand.

This is to eliminate negative impressions from shoppers that the smaller store formats are not as comprehensive in terms of product offering when they are just as complete as its bigger store formats.According to Co, by going for a single brand there will be easier recall and equal treatment for all of its shoppers. This should also avoid any thought of discrimination from among its shoppers.What they would now do is concentrate on adjusting their product assortment to tailor to a particular location.

In addition, Co said the company is pilot testing an online grocery shopping for select AlingPuring store members.

Source: http://www.mb.com.ph/puregold-allots-p2-6-b-capex-for-2016/

December 1, 2015

By James Loyola

Cosco Capital Inc, the retail holding firm of Mr. Lucio Co, has reported a record attributable net income of P3.01 billion for the first nine months of 2015, 18 percent higher than the P2.55 billion earned in the same period last year.

“All our operating business units are on track to achieve record profits for the year 2015.” said Cosco president Leonardo Dayao in a disclosure to the Philippine Stock Exchange.

Cosco’s consolidated revenues for the period amounted to P81.45 billion, up 23 percent versus the P66.28 billion generate in the first nine months last year.

For the first nine months of 2015, the Retail business segment from Puregold Price Club and S&R Membership contributed 83 percent of the total revenues followed by Specialty Retail from Liquigaz, the second and Office Warehouse at 12 percent, and the rest coming from Liquor Distribution and Real Estate Leasing business units.

Puregold Group net sales increased by 13 percent to P67.33 billion for the first nine months 2015 due to the strong consumer demand from its 245 Puregold stores and 9 S&R Membership stores and 13 S&R quick service restaurant stores.

As of end September 2015, Puregold Group has a total of 267 stores with a net selling area of about 421,000 square meters.

Cosco’s consolidated net income for the first nine months 2015 amounted to P4.62 billion up 15 percent compared to P4.03 billion same period last year.

Net income after taking out minority interest from the Retail business unit contributed 54 percent of the profits followed by Real Estate Leasing 24 percent, Liquor Distribution 13 percent and Specialty Retail with 14 percent.

The net income for the retail business increased by 6.5 percent, real estate leasing rose by 26 percent, liquor distribution grew by 6 percent, respectively, for the nine months 2015.

Source: http://www.mb.com.ph/cosco-capital-posts-record-p3-b-net-profit/

By Richmond S. Mercurio (The Philippine Star) | Updated November 14, 2015 - 12:00am

MANILA, Philippines - Puregold Price Club Inc., the country’s second largest grocery retailer, posted a net income of P3.2 billion in the nine months to September, 6.5 percent higher than the same period a year ago as continued store expansion and acquisitions boosted sales.

Consolidated net sales rose 12.6 percent to P67.33 billion due to strong consumer demand from its existing Puregold, S&R stores and S&R New York Style Pizza stores as well as new stores opened during the year.

“We are excited about the growth prospects for Puregold in 2015. Puregold only same store sales growth of 3.6 percent for the first nine months is tracking better than our expectations,” Puregold president Vincent Co said.

The listed grocery chain of Lucio Co said income from operations alone grew 6.6 percent to P4.58 billion.

The company opened a total of 16 Puregold stores, seven S&R QSR stores, and 11 Lawson stores.   It likewise acquired nine NE Bodega supermarket stores and eight Budgetlane supermarket stores during the period.

As of the end of September, Puregold had 267 stores nationwide including nine S&R stores, and 13 S&R New York style QSR. It also has 17 NE Bodega and Budgetlane Supermarket outlets.

Puregold has allocated a capital spending of P3.4 billion this year to be funded by internally generated cash and short-term untapped bank credit lines.

The firm expects its consolidated net sales to grow 12-15 percent by year-end

Source:http://www.philstar.com/business/2015/11/14/1521550/puregold-improves-bottom-line-9-months

December 11, 2015 07:04:00 PM

PUREGOLD Price Club, Inc. is hiking its 2016 capital expenditure budget amid plans to expand its network organically, with the Lucio L. Co-owned supermarket operator seeing a slight slowdown in sales and profit growth next year.

The country’s second-largest retailer is spending P2.6 billion next year, higher than the estimated investment of P1.9 billion for 2015, Puregold Investor Relations Officer John T. Hao told reporters on Friday.

For 2016, sales and earnings are expected to grow in the low-teens level -- slower than this year’s goal of low- to mid-teens -- due to a high base effect, Cosco Capital, Inc. President Leonardo B. Dayao said. Cosco Capital is the parent of Puregold.

Next year’s growth will be accompanied by a 3% expansion in same-store sales, which is at the high-end of the 2-3% target for the entire 2015, Mr. Hao said.

The company is allocating P1 billion to roll out 25 Puregold stores, with launches focusing on North Luzon, the Visayas and Mindanao. The firm is likewise earmarking P1 billion to open two S&R Membership Shopping outlets outside Metro Manila, P450 million to launch 75 Lawson convenience stores and P150 million to add 10 quick-service restaurants.

Lawson, which started operations this year, will end the year with 15 stores -- lower than the original 50 stores it had intended to open this year.

From 2016 to 2020, Puregold is rolling out 25 stores every year, excluding acquisitions, Mr. Hao said. The company has been opening at least 25 Puregold stores since listing in the Philippine Stock Exchange in 2011.

The capex program for the year excludes its war chest for acquisitions, but Puregold continues to explore opportunities to accelerate growth, Mr. Hao said.

Puregold shelled out P1.5 billion for acquisitions last year. The firm took over nine supermarkets owned by NE, Inc. in February and eight supermarkets operating under the trade name Budgetlane in August.

The company last week opened its first Puregold store in Cotabato, becoming the first major retailer to enter that market, Mr. Dayao said.

“Most of our stores are in Metro Manila so there’s saturation. We have a wide footprint in Metro Manila, but there are some areas where we are looking for best location like Pateros and Makati,” Puregold Vice-President for Operations Antonio E. De Los Santos said.

Consolidated net income rose 6.5% to P3.2 billion in the first nine months of 2015. Consolidated net sales increased 12.6% year-on-year to P67.33 billion.

At end-September, Puregold was operating 267 stores nationwide, including nine S&R stores, and 13 S&R New York Style restaurants. The tally excludes the 17 stores of NE and Budgetlane Supermarket.

Shares in Puregold slid 25 centavos or 0.74% to close at P33.75. -- Krista Angela M. Montealegre

Source:http://www.bworldonline.com/content.php?section=Corporate&title=puregold-boosts-spending-plans-to-branch-out-from-&8216saturated&8217-metro-manila&id=120075

ABS-CBNnews.com

Posted at 12/01/15 2:51 PM

MANILA - Cosco Capital Inc. of businessman Lucio Co posted an 18 percent increase in its nine-month profit this year.

Cosco said its net income to equity holders reached P3.01 billion in the first nine months of 2015, up from the P2.55 billion posted in the same period in 2014.

“All our operating business units are on track to achieve record profits for the year 2015,” said Cosco president Leonardo Dayao.

The firm's consolidated revenues in the period reached P81.45 billion, up 23 percent from the P66.28 billion last year.

Its retail business segment from Puregold and S&R contributed 83 percent of the total revenues, followed by Specialty Retail from Liquigaz at 12 percent, and the rest coming from liquor distribution and real estate leasing business units.

The net sales of Puregold Group increased by 13 percent to P67.33 billion for the first nine months 2015 driven by strong consumer demand from its 245 Puregold stores and nine S&R Membership stores and 13 S&R QSR stores.

As of end September 2015, Puregold Group has a total of 267 stores with a net selling area of about 421,000 sqm.

Source:http://news.abs-cbn.com/business/12/01/15/lucio-cos-cosco-nets-p3-b-in-jan-sept

December 1, 2015 9:41 pm

By Kristyn Nika M. Lazo, Reporter

Cosco Capital Inc., the retail holding firm of businessman Lucio Co, saw a 15 percent increase in net income during the first nine months of the year.

Consolidated net income grew by 15 percent to P4.62 billion from P4.03 billion a year earlier. Net income attributable to shareholders advanced by 18 percent to P3.01 billion from P2.55 billion.

The retail business unit accounted for 54 percent of the net income, followed by real estate leasing (24 percent), liquor distribution (13 percent) and specialty retail (14 percent). Revenues climbed by 23 percent to P81.45 billion from P66.28 billion, helped by the retail supermarket business.

Consolidated revenues came mostly from sales by Puregold and S&R stores (83 percent), followed by specialty retail unit Liquigaz and office supplies store Office Warehouse (12 percent). The balance came from liquor distribution and real estate leasing (5 percent).

“All our operating business units are on track to achieve record profits for the year 2015,” Cosco President Leonardo Dayao said in a statement.

Supermarket arm Puregold Price Club Inc. saw its net income went up 6.5 percent to P3.2 billion from P3.006 billion on higher sales from 245 Puregold stores, nine S&R Membership stores, and 13 S&R quick service restaurant outlets.

Cosco’s real estate leasing unit saw net income improved by 26 percent. Net income from liquor distribution grew by 6 percent.

Source: http://www.manilatimes.net/cosco-capital-9-mth-net-up-15-record-year-seen/232214/

Manila, Philippines – Cosco Capital Inc, the retail holding firm of Mr. Lucio Co, has reported a record net income to equity holders of Php 1.86 billion for the first half 2015 which represents an 24% growth compared to Php 1.5 billion in the same period 2014. 

“All our operating business units are performing well and we believe that this trend will continue for the year 2015. We are constantly working on more expansions & acquisitions across all businesses to cater to the growing demands of consumers.” said President Mr. Leonardo Dayao.  

Cosco’s consolidated revenues in 1H 2015 amounted to Php 52.74 billion, up 30% versus Php 40.59 billion last year. For the first half of 2015, the Retail business segment from Puregold & S&R contributed 82% of the total revenues followed by Specialty Retail from Liquigaz, the second largest LPG player in the Philippines &Office Warehouse at 13%, and the rest coming from Liquor Distribution and Real Estate Leasing business units.

Puregold Group net sales increased by 12% to Php 43.14 billion for the first half 2015 due to the strong consumer demand from its 239 Puregold stores and 9 S&R Membership stores and 10 S&R QSR stores. As of end June 2015, Puregold Group has a total of 258 stores with a net selling area of about 414,000 sqm. 

Cosco’s consolidated Net income for the first half 2015 amounted to Php 2.87 billion up 24% compared to Php 2.31 billion same period last year. Net Income after taking out minority interest from the Retail business unit contributed 55% of the profits followed by Real Estate Leasing 25%, Liquor Distribution 12% and Specialty Retail with 13%. 

The net income for the retail business increased by 21%, real estate leasing rose by 21%, liquor distribution grew by 15% respectively. 

Source: http://edge.pse.com.ph

Manila, Philippines – Puregold Price Club, Inc. (PGOLD) the second largest grocery retailer in the Philippines has reported a consolidated net income of Php 2 billion for the first half of 2015 which represents a 21.1% growth compared to Php 1.66 billion in the same period in 2014. Net margins for the first half 2015 is currently at 4.7% which is slightly better compared to the 4.3% same period last year.

“We are excited about the growth prospects for Puregold in 2015. During the first semester, we have opened 10 Puregold Stores, 4 S&R QSR Stores, 4 Lawson Stores and have acquired the 9 store NE Bodega supermarket. Puregold only same store sales growth of 3.6% for the first half 2015 is better than our expectations.” said President Vincent Co.  

Puregold consolidated net sales increased by 11.9% to Php 43.14 billion for the first half of 2015 due to the strong consumer demand from its existing 233 Puregold stores; 9 S&R Membership stores and 6 S&R New York Style Pizza stores as well as new stores opened during the year. Income from operations grew grew to Php 2.86 billion in first half of 2015, up by 20.9% compared to Php 2.37 billion during the same period last year.

As of end of 1H 2015, Puregold has 258 stores nationwide including 9 S&R stores, and 10 S&R New York Style QSR.

Source: http://edge.pse.com.ph