PUREGOLD Price Club, Inc. Reported that its consolidated net income rose 1.4% to P8.18 billion last year, driven by improvements in gross margins and sustainable expense management.
The agency said in a statement on Wednesday that the increase was also due to the reduction in corporate income tax with the implementation of the Corporate Recovery and Tax Incentives for Enterprises Act.
In its unaudited financial statements, consolidated net sales fell 2.7% from P168.6 billion in 2021 to P164.1 billion.
“The decline in net sales was primarily driven by a decline in customer visits, especially for PureGold stores, as the government implemented health protocols in 2021 and people became more aware of the virus,” the company said.
Meanwhile, consolidated total profits rose 3.2% to P30.1 billion from P29.2 billion in 2021, driven by “strong and sustained supplier support through trade discounts in the form of annual rebates and conditional discounts”.
In 2021, operating income increased by 1.7% to P3.21 billion, from P3.15 billion in 2020.
“As the lockdown restrictions begin to relax, some tenants start working again, which increases rental income,” Puregold said.
Operating costs rose 7.4% from P18.9 billion to P20.4 billion due to an increase in operating costs from newly opened stores and old stores.
Puregold added that operating costs were lower in the first half of 2020 due to the severe lockdown in effect.
The company is primarily involved in the business of products such as consumer goods on a wholesale and retail basis.
It is also owned by Entenso Equities, Inc. It is owned by two holding companies, namely: Ayagold Retailers, Inc. And San Roque Supermarkets.
By the end of 2020, its store network covers 244 hypermarkets, 100 supermarkets, 31 minimarts, 20 warehouse clubs, 46 quick service restaurants, two Mercado branches and 30 Sun Rock supermarkets for a total of 501 stores across the country.
On the stock exchange, Puregold shares fell 45 cents, or 1.29%, to close at P34.40. – Luisa Maria Jacinta c. Jackson