Graphics by THEPHILBIZNEWS
Publicly listed Puregold Price Club Inc. has been recognized by London-based business publication Financial Times (FT) in its latest annual ranking of 500 High-Growth Companies in the Asia-Pacific region.
This year’s rankings, compiled in partnership with FT sister publication Nikkei Asia and research provider Statista, lists businesses from the region’s most developed markets, according to their pre-pandemic compound annual growth rate (CAGR) in revenue, between 2016 and 2019.
“This latest annual FT ranking of 500 of the region’s high-growth companies comes at a time of peak risk,” the Financial Times said. The rankings “show how these businesses have fared over the past year, but they do identify those that were in a position of strength coming into the crisis.”
In its survey results, the Financial Times said Puregold recorded an absolute growth rate of 37.2 percent from 2016 to 2019, which put the retailer at number 483 and one of only 20 Philippine companies in the list. The growth rate translates to a compounded annual growth rate (CAGR) of 11.1 percent, heading into the year 2020.
Despite the onset of the coronavirus pandemic, Puregold was able to sustain this growth and recorded an 18.9% increase in consolidated net income, improving to P8.05 billion in 2020 from P6.77 billion in 2019. It continued this run in the first quarter of 2021, with net income growing by 14.6% to P2.02 billion from P1.76 billion year-on-year despite posting a decline in net sales.
“We are humbled to be considered among the few Filipino companies in this Top 500 list,” said Puregold President Ferdinand Vincent P. Co. “But there is still a lot to do. We are committed to driving and sustaining growth in 2021 and beyond through store expansions and innovations in grocery retailing.”
Part of its success was the company’s ability to adapt to the challenges brought about by the health crisis, with hampered mobility and constrained incomes. The company banked on a strong online presence to focus on supporting Tindahan Ni Aling Puring (TNAP) members and other customers.
“Puregold’s innovations and investments in new systems will continue to drive the organization forward,” said Co. The company continues to support and expand the reach of its online and delivery services as well as the Puregold mobile app, which allows shoppers to purchase products conveniently through their smart phones.
“We now maintain a solid presence in the digital space through technology-based solutions, partnerships with delivery service apps, and our own online channels which include Facebook and YouTube – giving the company a broader reach by which to engage shoppers,” added Co.
Along with the consistent focus on optimizing productivity, the company also made operations strategies more responsive to consumer needs through out-of-store activities and e-commerce initiatives. The company also banked on its years of experience by increasing supply chain efficiency and maintaining strong relationships with suppliers and trade partners.
The country’s leading grocery operator aims to pursue its expansion plans this year as it moves closer to its goal of 500 stores nationwide. In its recent annual stockholders meeting, the company bared that it would open at least 30 new stores nationwide.
The company has earmarked P4.1 billion to P4.7 billion for capital expenditures this year. Half of this year’s budget, or around P1.7 billion to P2.3 billion, will be set aside for the new Puregold stores. As of end 2020, Puregold had a total of 469 stores nationwide, composed of 403 Puregold stores, 20 S&R membership shopping warehouses, and 46 S&R New York Style quick-service restaurants.