DISCLOSURE DEPARTMENT MS. JANET A. ENCARNACIONpuregold.webtogo.com.ph/images/items/uploads/PGOLD...
Transcript of DISCLOSURE DEPARTMENT MS. JANET A. ENCARNACIONpuregold.webtogo.com.ph/images/items/uploads/PGOLD...
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DISCLOSUThe PhilippiPhilippine SAyala TrianMakati City
Attention:
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Analysts’ Briefing CY 2011 Results and Performance
March 1, 2012
PUREGOLD PRICE CLUB, INC.
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Briefing Outline
• Headlines
• Operating Performance
• Financial Performance
• Guidance for CY 2012
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Headlines (1)
• Opened 38 new stores in CY 2011; operating 100 stores at year-end.
• Total net sales grew 33.9%.
• Gross profit margin improved to 14.2%.
• Net profit margin posted at 4.0%.
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Headlines (2)
• Targeting 25% growth in top-line in CY 2012; on top of aiming on current gross and net profit margins.
• Intends to open 25 new stores in CY 2012.
• Aims to address all income segments by acquiring the S&R membership shopping business
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Formats Hypermarket Supermarket Discounter
No. of stores 61 28 11
Net selling area (sqm) 184,773 25,436 4,528
Avg. net selling space (sqm) 3,029 908 412
Net selling area composition
No. of stock-keeping units (SKUs) 30,000 – 50,000 Up to 8,000 1,500 – 2,000
Locations Close proximity to major
intersections and transportation hubs Residential areas Residential areas
Customer targets Retail consumers (65%) &
re-sellers (35%) Retail consumers Re-sellers and retail consumers
Wide Product Distribution
Discounter (Extra)2.1%
Supermarket (Junior)11.8%
Hypermarket (Price Club)86.0%
Food74%
Non-food26%
Non-food20%
Food80%
Non-food25%
Food75%
Operating Performance
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No. of stores • 100
Presence in • 31 cities and 23
municipalities
Net selling area
• 214,737 sqm
North Luzon (16 stores)
Luzon
Visayas
Mindanao
South Luzon (31 stores)
Metro Manila (53 stores)
BULACAN
RIZAL
LAGUNA
CAVITE
Manila Bay
Laguna de Bay
Caloocan
Pasig
Marikina
Valenzuela
Caloocan
Malabon
Quezon City
Manila San Juan
Mandaluyong
Navotas
Makati
Parañaque
Pasay Taguig
Pateros
Las Piñas
Muntinlupa
Key statistics Geographic coverage
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2
12
3
17
6
61
28
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18
Metro Manila North Luzon South Luzon
Number of retail outlets
Area with Puregold store coverage
Operating Performance
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Operating Performance
Per format location distribution of 38 new stores in CY 2011 Expansion in net selling area
12 of 17 of 9 of
sqm. sqm.
% %
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Operating Performance
Roll-out profile of new stores
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Format Hypermarket Supermarket Discounter
No. of stores 61 28 11
Net sales per format (PHP million) 33,556.5 4,694.7 736.7
Revenue contribution
Gross profit per format
(PHP million) 4,668.7 (13.9%) 766.3 (16.3%) 99.8 (13.6%)
Sales per square meter (PHP) 181,609 184,572 162,687
Total traffic (million) 52 14 2
Average net ticket (PHP) 642 340 329
Net sales growth (%) 22 96 1,620
Traffic growth (%) 17 78 2,097
Average net ticket growth (%) 4 11 -22
Like-for-like net sales growth (%) 6 14
Like-for-like traffic growth (%) 1 8
Like-for-like average net ticket growth (%) 5 6
Discounter (Extra)1.9%
Supermarket (Junior)12.0%
Hypermarket (Price club)
86.1%
Financial Performance
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2.2
3.5
5.5
9.2%12.1%
14.2%
CY 2009 CY 2010 CY 2011
Gross profit Gross margin (%)
29.1
39.0
24.1
CY 2009 CY 2010 CY 2011
PHP billion
Note: Puregold Junior results were consolidated from 2H 2010 onwards
Financial Performance
Revenues Gross profit
PHP billion
• Strong revenue growth driven by continuing store roll out • Scale of operations resulted to stronger support from suppliers in terms of discount and rebates • Gross margins have improved from 9.2% to 14.2% in 2011
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2,696
3,568
2,082
9.3%
9.2%8.6%
CY 2009 CY 2010 CY 2011
Selling expenses % of revenues
Financial Performance
Selling expenses General and administrative and Other operating expenses
PHP million PHP million
Note: Puregold Junior results were consolidated from 2H 2010 onwards
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458
985
2,216
5.7%
3.4%
1.9%
CY 2009 CY 2010 CY 2011
Operating income Operating margin (%)
PHP million
Financial Performance
Operating income Net income
PHP million
Note: Puregold Junior results were consolidated from 2H 2010 onwards
EPS – PHP0.97
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Notes: Average of inventory at the beginning and end of the period / cost of sales x 363 Average of trade receivables at the beginning and end of the period / net sales x 363 Average of trade payable at the beginning and end of the period / cost of sales x 363
Financial Performance
3.6 2.7 2.6
31.534.3
40.541.5
44.8 45.0
CY 2009 CY 2010 CY 2011
Trade receivables turnover days Inventory turnover days Trade payables turnover days
Stable working capital days
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Guidance for CY 2012
• Net sales targeted to grow by 25% from PHP39.0 billion in CY 2011
– like-for-like net sales growth anticipated at 4%
– full year operations of 38 new stores opened in CY 2011 to support targeted top-line for CY 2012
• Gross and net profit margins aimed at about 14% and 4%, respectively
– Continuing suppliers’ support arising from scale of operations to dramatically contribute to the sustainability of margins
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Guidance for CY 2012
• Opening 25 new stores in CY 2012 – 1st hypermarket for CY 2012 opened in La Trinidad, Benguet on January 18, 2012
– remaining 24 new store locations contracted and in various stages of design development and construction
– Capex for CY 2012 estimated at about PHP3 billion; to be funded by the balance of the net IPO proceeds in the amount of about PHP2 billion and internally generated funds
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Guidance for CY 2012
Targeted new stores per format in CY 2012 On-stream locations of new stores in CY 2012
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Guidance for CY 2012
Picture during the opening of the hypermarket in La Trinidad, Benguet
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Guidance for CY 2012
• Aims to address all income segments by acquiring the S&R membership shopping business
– Board meeting of February 17, 2012 granted management authority to commence study and discussion for possible merger/acquisition of the S&R membership shopping business at terms and conditions satisfactory to both parties
– in compliance with fairness opinion rules of SEC and PSE, Punongbayan & Araullo, CPAs appointed to conduct an independent third-party valuation of PGOLD and the target company
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Guidance for CY 2012
• S&R membership shopping business organized by the original owners in 2000 in partnership with Price Smart of the US
• Acquired by the Co family in 2006
• Operated by Kareila Management Corporation, a company wholly-owned by the Co family
• Operating 6 stores located in: – Bonifacio Global City - Congressional Ave., Q. C.
– Alabang, Muntinlupa - Aseana, Baclaran
– San Fernando, Pampanga - Mandaue City, Cebu
Basic information on the S&R membership shopping business
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Analysts’ Briefing for CY 2011
Q & A
Many thanks!