TWO of Lucio L. Co’s listed businesses — Puregold Price Club, Inc. and The Keepers Holdings, Inc. — reported higher earnings during the first half of the year as they booked higher sales during the period.
In a disclosure on Tuesday, retailer Puregold recorded a net income of P4.4 billion, up 4.8% from the P4.2 billion posted in the same period last year, due to an increase in sales.
In the six months ending June, the company reported a 10.9% rise in its top line to P91.23 billion from P82.24 billion the previous year.
During the first half, its same-store sales went up 7% as its establishments saw a 6.7% rise in traffic, while “baskets were flattish at 0.2% year on year.”
The company saw positive same-store sales growth of 5.9% from Puregold stores and 9.5% from S&R warehouse clubs for the period.
During the first half, it booked a 7.5% jump in gross profits to P16.85 billion from P15.68 billion in the same period last year.
“Double-digit top line growth was partially offset by compressed margins and higher operating expenses. The company increased its business activities and is gearing up to increase its store counts,” it said.
Puregold’s operating expenses went up by 12.8% to P11.69 billion from P10.37 billion the prior year.
The company announced earlier that it had acquired 14 DiviMart stores from their previous owners.
As of end-June, the company opened 16 new Puregold stores, one S&R Membership Shopping Warehouse, and one S&R New York Style quick service restaurant.
The group has a total of 543 stores nationwide, which include 467 Puregold stores, 23 S&R Membership Shopping Warehouses, and 52 S&R New York Style restaurants.
Meanwhile, liquor distribution company The Keepers reported an 18% increase in net income for the first half to P1.16 billion from P980.75 million in the same period last year due to stronger sales volume from its imported brandy, wines and specialty beverages.
The company’s consolidated revenue for the period rose by 19% to P6.5 billion from P5.48 billion the previous year driven by a 10% growth in sales volume.
“This was driven principally by Alfonso, the leading imported brandy in the market, which has already surpassed its pre-pandemic levels, premiumizing market and on-premise channel rebound,” The Keepers said in a separate disclosure.
Also, a factor in the rise of its top line was the price increases implemented during the two quarters ranging from 4% to 10%.
The company’s operating expenses, likewise, climbed by 27% to P P457.17 million from P358.92 million due to an 18% increase in distribution costs and advertising and promotional expenses.
Other operating expenses such as taxes, transportation and travel, professional fees, and insurance covering inventory also posted an increase during the period, the company said.
The Keepers is a leading importer and distributor of spirits, wines, and related products in the Philippines.
On the local bourse on Tuesday, The Keepers jumped by 5.49% higher to P1.73 per share while Puregold fell by 2% to P29.40 a share. — Adrian H. Halili